'SHOE SPY' generated a Short Exit Signal

'SHOE SPY' generated a Short Exit Signal at the 4pm Close on Friday 6/19/2009. The tracking vehicle (SPY) took a 0.4% loss, though the trading vehicle (ESU09), took a larger % loss, perhaps due to the ESU09 trading above fair value or something, which obviously did not work in my favor. I imagine that over a large enough period of time, the periodic discrepancy between the SPY and the ES will even itself out.

So this questionable model booked another losing trade. I will have to revisit the following:

• stop trading the model


• rebuild the model


• reduce the position size even further for future entry signals