20DMF Real-Time -> cash

[pdp-brugge]

Pascal,

One of the rules of the 20DMF RT is that a long signal "will turn to cash when OBOS falls below -72".
I presume that this means going above 72 and then falling back down below 72. The minus sign in your message is somewhat confusing.
Yesterday we had intraday an OBOS of 73.47 and ended at 68.84.
Should that not have fired the trigger for going to cash?

Or is the message indeed correct and is this the Fail Safe rule added in Spring 2011: "If the OB/OS issues a buy signal, then moves above the OB/OS limit, but subsequently falls back below that level, then upon falling back the 20DMF reverts to cash until a buy signal is issued anew."?

[Pascal]

Pascal,

One of the rules of the 20DMF RT is that a long signal "will turn to cash when OBOS falls below -72".
I presume that this means going above 72 and then falling back down below 72. The minus sign in your message is somewhat confusing.
Yesterday we had intraday an OBOS of 73.47 and ended at 68.84.
Should that not have fired the trigger for going to cash?

Or is the message indeed correct and is this the Fail Safe rule added in Spring 2011: "If the OB/OS issues a buy signal, then moves above the OB/OS limit, but subsequently falls back below that level, then upon falling back the 20DMF reverts to cash until a buy signal is issued anew."?

Not at all, PDP. The 20DMF RT will turn to cash if it falls below the -72 OS level.
The Overbought level is not used. The 20DMF will stay invested long until a short signal is triggered or until the OBOS falls below -72, whatever comes first.

However, you are right: we are so far above the -72 level that this message "will turn to cash when OBOS falls below -72" does not really make sense anymore.

We will adapt (erase) it.


Pascal