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EV Trading Rules
I’m a novice user of this website.
By experience I know for myself that I need very restrictive rules for my trading.
I'm studying the different EV data in order to establish a set of rules for myself.
When finished I would like to publish these rules on this forum so that I get the necessary feedback to further improve my trading rules.
In the daily repository file “PascalA_list.xls” there is a page called “Sectors”.
The “How_to_EV.pdf”, that I have found in this forum, writes “that back-tests have shown that it pays to buy sectors with "Aver Tot EV" < 50% combined with a strong 2D Thrust. A low Aver Tot EV indicates that the sector has been under selling pressure, while the 2D thrust probably indicates that short players are covering.”
My question is now if the opposite is also true?
Is it safe to say that to go short on certain stocks, the sector must preferably have a “Strength Aver Tot EV” > 50% combined with a weak (negative) 2D Thrust?
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