IWM Robot <-> QQQ Robot

[pdp-brugge]

For the IWM Robot one of the main trading decisions is based on the modus of the 20DMF.
The 20DMF is calculated over more than 1000 stocks in 95 different sectors.
For a reason that I don’t know (because I was not a member at the time of creation of the robot) only the IWM ETFs are used in the IWM robot trades.
Before I started to trade the IWM robot I did most of my discretional trades with a combination of Russell-2000 and Nasdaq-100 stocks.
I did a little research and used the trigger signals of the 20DMF to generate trades with IWM and QQQ.
I pushed those trades in a monthly view to make a comparison between the performance of IWM and QQQ.
To my humble opinion the results are very similar and yet different in the same way.
The end result after a period of 2 year (I did the research on the trades based on date range of 01/01/2010 up until 12/09/2011) is almost identical.
Yet the QQQ performance is more “smooth”. The QQQ only makes less “negative” months and those “losses” are not as great as the losses of IWM.
For me (psychological) trading QQQ with the 20DMF signals (or IWM Robot settings) would feel more comfortable.
Am I overlooking something else?

11848

[Billy]

For the IWM Robot one of the main trading decisions is based on the modus of the 20DMF.
The 20DMF is calculated over more than 1000 stocks in 95 different sectors.
For a reason that I don’t know (because I was not a member at the time of creation of the robot) only the IWM ETFs are used in the IWM robot trades.
Before I started to trade the IWM robot I did most of my discretional trades with a combination of Russell-2000 and Nasdaq-100 stocks.
I did a little research and used the trigger signals of the 20DMF to generate trades with IWM and QQQ.
I pushed those trades in a monthly view to make a comparison between the performance of IWM and QQQ.
To my humble opinion the results are very similar and yet different in the same way.
The end result after a period of 2 year (I did the research on the trades based on date range of 01/01/2010 up until 12/09/2011) is almost identical.
Yet the QQQ performance is more “smooth”. The QQQ only makes less “negative” months and those “losses” are not as great as the losses of IWM.
For me (psychological) trading QQQ with the 20DMF signals (or IWM Robot settings) would feel more comfortable.
Am I overlooking something else?

11848

Pdp,

It was all explained in this document.
Billy
http://www.effectivevolume.eu/content/Reports/Trading_IWM.pdf

[Pascal]

For the IWM Robot one of the main trading decisions is based on the modus of the 20DMF.
The 20DMF is calculated over more than 1000 stocks in 95 different sectors.
For a reason that I don’t know (because I was not a member at the time of creation of the robot) only the IWM ETFs are used in the IWM robot trades.
Before I started to trade the IWM robot I did most of my discretional trades with a combination of Russell-2000 and Nasdaq-100 stocks.
I did a little research and used the trigger signals of the 20DMF to generate trades with IWM and QQQ.
I pushed those trades in a monthly view to make a comparison between the performance of IWM and QQQ.
To my humble opinion the results are very similar and yet different in the same way.
The end result after a period of 2 year (I did the research on the trades based on date range of 01/01/2010 up until 12/09/2011) is almost identical.
Yet the QQQ performance is more “smooth”. The QQQ only makes less “negative” months and those “losses” are not as great as the losses of IWM.
For me (psychological) trading QQQ with the 20DMF signals (or IWM Robot settings) would feel more comfortable.
Am I overlooking something else?

11848

The 20DMF is the market direction model used by the IWM Robot.
The IWM Robot then uses statistics and pivots specific to IWM.
This same market direction model could also be used for QQQs, SPY and other broad based ETFs.
After that, you'd have to look at the right entry/exit.

I found that QQQ was very dependent on AAPL. So, I believe that it is smoother simply because AAPL was smooth during your analysis period. What if AAPL had a bad quarter?

When trading IWM, the ETF would not move much even if one of the component had a bad quarter.


Pascal