Sunday, April 14 2013
By now, most of you know that we have been working on a new, slightly faster trading model for over six months
- we are most pleased to officially introduce our new "MIPS4/MF+" model
- the name comes from: (a) MIPS4 to identify a new model, and (b) MF+ meaning medium-frequency "plus"
- MIPS4 is an offshoot of MIPS3, but uses algorithms from all MIPS models.
As with all of the MIPS models, with MIPS4 you can trade any ETF that "correlates" well with the SPY
- and, MIPS4 is a little smoother ride than MIPS3 (i.e., with less "volatility")
- as a result, the MIPS4 model produces very "smooth" results.
For this reason, we feel comfortable approving the use of MIPS4/MF+ signals to trade leveraged ETFs.
But, of course, you do NOT have to trade with leverage...
- if you do use leverage, however, we recommend double leverage long, but single leverage short for more
conservative use of leverage.
See the table below for the performance of all of the MIPS models in the time frame of 2003-3/31/13 .
In the graph below, we show MIPS4/MF+ as compared to MIPS3/MF.Improved and MIPS3/MF.org between 2006-03/31/13. M3.org (brown line) in the graph is the performance of the original MIPS3/MF model without the improvements made in 2011-2012.
The graph below shows MIPS4/MF+ trading double leverage SPY (SSO) on long signals and single leverage SPY (SH) on short signals. For more performance reports, click on the "Performance" tab on the main menu on our homepage.