Sunday, July 31, 2016

Beating the Market

Research has shown that the less than 1% of active traders are able to beat the market according to a study done by Brad Barber of UC Davis and Terrance Odean of UC Berkeley. We all know about people like Warren Buffet or Peter Lynch who have consistently beaten the market over the years but there is not a single technical trader known to do the same. With so many technical indicators and trading systems, we have to ask ourselves what is the use of all of this if none of them can beat buying and holding? After years of analyzing price patterns and workings on my trading system, I am ready to benchmark "Trending Waves" against the S&P500 to show if counting waves and using the Trend Average creates additional value. The planned launch date is January 1st, 2017 and it will consist of a single, non-leveraged or hedged position of SPY (S&P500 ETF). Which I will buy and sell using the system on this site. As the date approaches, I will elaborate more on the size of the position and how it will be evaluated.

Below are some articles that talks about the problem of beating the market.

http://www.marketwatch.com/story/almost-no-one-can-beat-the-market-2013-10-25

http://www.investopedia.com/articles/trading/10/beat-the-market.asp

http://www.forbes.com/sites/rickferri/2012/03/12/why-smart-people-fail-to-beat-the-market/#293273b9444a

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

Elliott Wave Analytics





No comments:

Post a Comment