NEW rotation model

Beginning this week I am introducing a new Rotation Model aiming to scan the SPDR sectors.

Let me know if this is of interest to you or if you would be interested in scanning other group (e.x iShares, etc)

I guess I'll call this model SPDR model which scans these ETF's:

Aerospace & Defense ETF	XAR
Biotech ETF	XBI
Consumer Discret Select Sector SPDR	XLY
Consumer Staples Select Sector SPDR	XLP
Energy Select Sector SPDR	XLE
Health Care Equipment ETF	XHE
Health Care Select Sector SPDR	XLV
Health Care Services ETF	XHS
Homebuilders ETF	XHB
Industrial Select Sector SPDR	XLI
Materials Select Sector SPDR	XLB
Metals and Mining ETF	XME
Oil & Gas Equipment & Services ETF	XES
Oil & Gas Exploration & Production ETF	XOP
Pharmaceuticals ETF	XPH
Retail ETF	XRT
Semiconductor ETF	XSD
Software & Services ETF	XSW
Technology Select Sector SPDR	XLK
Telecom ETF	XTL
Transportation ETF	XTN
Utilities Select Sector SPDR	XLU

Week 32

NQ and ES systems:

Both switched to long

Rotation Model:

Begining this week I will keep regular updates of a succesful rotation model I've been using in the past 2 years. This model was based in the idea developed in Decision Moose . We are using basically the same instruments but the signal generation if of course different.

The current signal is EPP

IMS system = NQ system

Below you will see the results (3 last real, the rest back tested) of the current version of the system, V 3.0

As I have indicated, I've been focusing in increasing the numbers of trades balanced with the trade fees. The model considers an initial investment enough to buy 100 shares of QQQQ, from them, it reinvests all the proceeds in the next trade. Commission is fixed in $ 9.99 per trade.

The theoretical result YTD is 52.7%. If you follow all the post of the living trades we have posted, you will notice that we've had 4 versions this year (really minor tweaks) and the real result YTD is a mixture of using Profunds (Tepix) and options, around 39%. For this latest version we will be leaving as vehicle only QQQQ shares.

As you know we began this blog more that a year ago, at that moment the system was a trend follower. Looking for reducing draw downs and more trades per month (ideally 4). Slowly the system has been moving to my surprise, into a reversal system and nowadays it does not have any trend following component !.

Due to that fundamental change in the concept of the system and that I am now finishing another model to track other markets (non Nasdaq) based on the same concept, I think the most appropriate is to change the name from now on to NQ system.

So, this is the last picture of the IMS system V3, welcome NQ systemV3: