'SB IDX' generated a Long Entry Signal for Thursday 7/30/2009's close

'SB IDX' generated a Long Entry Signal for Thursday 7/30/2009's close. This model is based on the trading behavior of the IDX over the past X number of days. It is due to be exited at today's (Friday's) Close unless its Money Management Stop is hit intraday.

As we can see from the Equity Curve chart shown above, the model is currently trading at it's all time high.

Here are some of the model's Performance Statistics:

• Model Tracking Vehicle=IDX
• Start Date=7/1/1994
• Number of Trades=48
• Average Trade Return=0.44%
• Average Winning Trade Return=0.79%
• Average Losing Trade Return=-0.61%
• Win Rate=75%
• RAWAL (Ratio of Average Win/Average Loss)=1.29
• Profit Factor=3.86

When building and testing the model, the out-of-sample test results were actually better than the in-sample construction results. Since I started trading this model in the fall of 2007, all of the trades (6) have been profitable, further enhancing the notion that this model is very robust. There is also a version for the SPY ('SB SPY') and the the NDX ('SB NDX'), though neither of them generated an entry signal on Thursday's close.

A strength of the model is the win rate of 75%. A weakness of the model is the Money Management Stop can be pretty high, currently 2.6%.

Disclosure: Long the EMDU09.

Disclosure: The performance results shown above are for Model analysis purposes and do not include commission or slippage. The model is built on data from the IDX, but I trade the model with the EMD e-mini. Actual trading results from the EMD usually differ from the model results of the IDX, with the EMD showing somewhat weaker performance data. Nonetheless, I still trade this model with the EMD and when executed according to the plan, it has generated consistent profitability for me.

***remember this is an illustration of what i am trading and my thinking...it is not a recommendation for you or anyone else to buy or sell this or any other security***