For the past ten years or so I have been putting out a blog on my websites: swingtrader.com, relativevalue.com, and perfectstormtradingstrategy.com.
During that time I have proposed looking at the investing/trading world through a different lens, focusing on relative strength combined with absolute momentum.
Since I started my blogs I noticed others promoting similar strategies.
A book was written a year ago highlighting some of my thoughts and a global advisory was established counseling many of the worlds largest money managers, using many of the tools that I had developed.
Most studies of actively managed funds tell us that only four percent of money managers are able to outperform, on a risk adjusted basis, the Dow or the S&P 500 averages over a ten year period.
I believe that most, if not all of the under performance is a result of two factors.
One) The inability of the manager to sell positions that are in decline because of the requirements that the manager be fully invested. That is , there is no viable alternative, so the manager stays invested, even in losing positions.
Two) The behavioral problem in admitting that you are wrong. The initial reason for the initial purchase is no longer valid. Not that you were wrong then, but you are wrong now. It has happened to all of us.
My basic strategy/system remedies both of these problems.
If you are an investor in equities, commodities, foreign exchange, long term, short term, or day trader, email me if interested in adding significant value to your investing/and or trading portfolio.