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Sunday, July 4, 2010
Consecutive down days can make good profit
SPX has been down 5 days in a row, so what happened if you buy at close today and sell at close the next Tuesday?
Well, the results are impressive but there’s an issue (not bug) in the back test software. See chart below (red bars), it counts the 6/7/8 consecutive down days as 5 consecutive down days because they all fit for the condition I specified for the back test software. So basically the back test means you buy at today’s close and hold until the first green day, you always win since year 2000.
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