March 22, 2009

Currency exchange trading – The shaded areas indicate the points when the Odd Lot Balance Index rose above 90.

Table 7 shows the action carried out during the 15-year test period, and the results. Starting with a portfolio of $20,000, the formula managed to more than triple this original figure by the end of the period, the final value of the portfolio being $62,853. These results were, during this period, inferior to the increase in the stock average itself, which rose fivefold, but the formula did allow some growth of capital, while remaining essentially conservative and thus offering considerable protection during market declines. It will be seen that there were six periods during which an increased percentage of stocks was called for. In four of these, the stock average was significantly higher at the ends of the periods than at the beginning, and in two, small declines were posted. Inasmuch as the declines were in neither case more than 5 percent, and the advances ranged from 12 to 67 percent, it can be fairly concluded that the modification of, the plan was profitable.

Currency exchange trading – The shaded areas indicate the points when the Odd Lot Balance Index rose above 90.

Get Your FREE Trading Course (Value $197)!…

Browse