03 Nov 2011
I was looking over the history of the MDM. It seems the model has given nearly twice as many signals in the last 12 months compared to most other periods.
... most challenging years on record. That the model has made nearly twice as many signal switches in 2011 [as of October 27 ... traders and trend followers. Fortunately, the model's fail-safes kept losses on false signals to a minimum during the first half ...
25 Aug 2010
The latest Market Direction Model Report is dated 5 days ago, is this because there has been no change in the signal?
... latest Market Direction Model Report is dated 5 days ago. Is this because there has been no change in the signal since then ... losses would be 3% (or 9%) greater if the signal proves to be false. There is a fail-safe built into each ...
02 Jul 2020
While the model has done well since early 2019, and outperformed from early 2016 to early 2018, it had difficulty for much of 2018. Please explain.
... the market was trading in wider, volatile bands. Thus the model has since opted to capture wider bands as the market may ... slowing economies. As stated in our reports, the model is taking fewer signals to capture major trends which helps to minimize whipsaws ...
22 Jun 2010
What are the weaknesses of the model?
... right stocks on buy signals. Increased volatility seen in 2008-2009 has shown false signals from the model to lose typically between ... increased volatility which caused larger than normal losses on false signals. Had you traded a 1-times ETF instead such as ...
22 Jun 2010
Why has the Dr K MDM systematic model done so much better over the long 35 year time frame from 1974 to 2009 compared to the last few years?
... the FAQ "What are weaknesses of the model." Case in point: Theoretical results trading ... volatility where the system had four false signals in a row [100% long on buy signal, 100% short ... site run by William Dirlam, which has a sound track record, wrote the ...
29 Nov 2011
How has Dr K MDM systematic model done against some of the best timing sites on the internet?
... performers shown in the table below had stellar returns in 2008 which catapulted ... numerous false price/volume signals in 2007. ** I also spot tested the model in ... individual stock selection on buy signals. 2) The model has a self-protection mechanism which ...
26 Aug 2012
What are the strengths of the model?
... . The model has a self-protection mechanism which keeps its drawdowns to a minimum. This self-protection mechanism results in more false signals but ...
26 Aug 2012
Should I expect returns similar to those achieved by the model?
... times the movement of the NASDAQ Composite had they existed then, returns would be ... limit losses if the signal is false. For nearly two decades, the model has been a big driving ... below). Keep in mind you would have had to withstand an -18.4% drawdown on ...
12 Jun 2012
How has high frequency trading affected the interpretation of price/volume action?
... due to a series of false signals with very little gained from any short-lived trends, thus the model finished a year such ... been knocked out of the picture since price/volume interpretation has become that much more challenging in the last few years ...
09 May 2011
Can you let us know when the model is close to switching signals? Can you also recommend position size when it does switch?
... about getting there. In giving more frequent updates on the model, it generally only serves to confuse the situation. We ... , one also sees that the true signals far outweigh the small losses from the false signals (whether one examines the NASDAQ Composite ...