SGS_ST (Short Term) is a short term (hours to days) timer specially designed for SPX. SGS_ST is trend following timing signal for trading SPY and SPY Options. SGS can be "Long", "Neutral" or "Short". SGS_ST uses at its core 13 EMA for SPX hourly. It also uses two leading indicator (RSI-14 and a proprietary leading indicator) to make enhance its timing. (VSG, Feb 20, 2016)
What is SGS?
SGS is trend following timing signal for trading. SGS can be "Long", "Neutral" or "Short". SGS is a docile signal and it's designed to change as major market trends change. It's not for short term trading. By its nature, SGS is a lagging indicator. SGS goes long after a bottom is made and goes short after a top is reached.
What is RTS?
Rank and Trading System (RTS) is what I developed in late 2007. The original idea came from a program called FastRube written by Roy Ashworth to rank and trade mutual funds (longs only). I used FastRube from 1996 to 2007 and traded Fidelity Select funds. I wrote my own software in 2007 to rank and trade stocks, both shorts and longs.
I backtested RTS, using SGS as its timer, trading from 1995 to 2007. It returned an average of 24% gain per year. I started using RTS in late 2007. All my trades are posted on the main page. Those trades are actual trades and not computer simulated back_tested trades.
What is Balance Trading?
Balance Trading is where I post my own trades in my long term accounts (i.e. retirement accounts, trust and education accounts and generally any money that I wouldn't need for the next five years).
I use SGS to time the entries and exists all of my trades. When SGS goes long, I buy, in equal dollar amount, the top 10 stocks ranked by RTS ranker. I hold those stocks until SGS goes neutral. At that point, I close (sell) my 10 long positions, move in to cash and stay there until SGS changes. When SGS goes short, I short, again in equal dollar amount, the bottom 10 stocks ranked by RTS. I hold those short positions until SGS goes nuetral. At that point, I close (cover) my 10 short positions, move in to cash and stay there until SGS changes.
I perform ranking every night after on a family of stocks (the top 200 heavily traded stocks and ETFs that are at least $15, excluding short and leveraged ETF's). While holding 10 long positions, if one of the positions fall in the bottom 100 stocks in terms its ranking, I sell that position on the next trading day at the open and buy the highest ranked stock that is not already one of my existing long positions, again at the open. While holding 10 short positions, if one of the positions rises to the top 100 stocks in terms of its ranking, I cover that position on the next trading day at the open and short the lowest ranked stock that is not already one of my existing short positions. I use Market Orders to open and close my positions. I don't use stoploss.
I post all RTS trades and SGS signals the night before.