The MensaMonkey took the bait and sold the XLI for the BND
once again giving the last trade of the
year a solid 1% loss after adding in the dividend. This will probably end the MensaMonkey's year
with an approximate 22% gain for the year.
The final tally and the four years of monkey business at MTD will be
posted in the near future.
The major gains in 2012 occurred during the first four
months of the year. MensaMonkey took a
liking to the price action through April accumulating a 31.6% gain for its best
trade of the year. The worst trade lost
6.7%. (MonkeyThrowDart was "off-line" January through July so I may just be "blowing smoke" here. In my defense, how many dishonest monkeys do you know?)
Looking back on the year there were many extended trends for
this "swing" type of system to beat its chest with, unlike the last
year. Many missed opportunities gave me
an excuse to tinker a little with this "frankenbeast". MensaMonkey2013 which will still be called
MensaMonkey is ready to roll. The only
noticeable changes will be the "vehicles" used for trading the
signals. The QLD, IWM, XLI, BND, XLU, QID will be replaced with a more
symmetric QLD, QQQ, BND, PSQ, QID. If you're acronymically challenged, here's a
visual...
A positive biased group of ETF's used in 2012 is shown in this chart. The only real "bear" is the QID identified by the red line.
A more symmetrical group of opposing ETF's will be used in 2013. QLD vs. QID, QQQ vs. PSQ.
I don't like symmetry but sorting through the numbers
generated by MM, and also realizing that his view of 2013 looks more like 2011
or worse, the simplicity of using a set of leveraged ETF's and a set of 1x
ETF's would suit this slightly modified system better.
Grace Kelly Set
The main signals have been reduced from four to three.
These signals determine the direction, or the
path of least resistance in the eyes of MM.
The three signals, according to the backtesting, will give MM a faster
response time.
The downside is the
potential for some occasional
whipsawing which is still favored over later
entry into a trade.
Did someone say "backtesting"?
