[ Trading Strategy ]

One of the goals of the MTR Stock Timing Model (MTR-TM) is to simplify trading. Many investors do not have time to scan stocks, search for picks, and trade long and short. A handful of LONG and SHORT MidCap 400 ETFs can be used to trade the timing model.

Example: On a UP signal shares of MDY could be purchased. On a DOWN signal MDY could be sold short, or in IRA accounts MYY short ETF could be purchased.

MTR-TM correlates to MidCap 400 ETFs the best over time. Nasdaq 100, over a longer period of time, comes in second. The grid below shows back-tested results trading various ETFs. Some members of MTR asked about results trading SPY, DIA, and QQQQ. We listed those results below as well but clearly MidCap 400 ETFs have higher returns using MTR-TM trading signals.

Back-Test Criteria:
* Trade Dates: 6/30/2006 to 1/27/2010
* $10,000 portfolio
* 26 Trades
* Trade: Purchase (Long or Short) ETF the day after a signal at the open
* No stops were used. Trades held from one signal to the next.

Symbol Name Starting Ending Winners Return
Per Trade
Total
Return
Max Trade
Draw Down
^VAY (Benchmark) Value Line
Arithmetic Index
$10,000 $23.497 62% 9.04% 134% -17%
IJK iShares
Midcap 400
$10,000 $19,962 54% 8.74% 97% -16%
IWR iShares Russell MidCap $10,000 $19,554 63% 7.44% 100% -15%
MDY SPDR
MidCap 400
$10,000 $20,268 54% 8.65% 103% -16%
MYY ProShares Short
MidCap 400
$10,000 $18,300 50% 9.11% 83% -20%
  Major Index ETFs            
DIA Dow Diamonds $10,000 $14,452 42% 7.93% 43% -13%
QQQQ ProShares Nasdaq 100 $10,000 $19,476 58% 8.15% 95% -12%
SPY  S&P 500 Spiders $10,000 $15,134 42% 8.21% 51% -14%


MTR Investors Group Disclaimer

 

 
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