Sunday, August 18, 2013

Higher returns with fewer trades

I'm getting close to finishing "Version 2.0" of my market bots, and along the way I've made a few discoveries that I've been able to incorporate into the soon-to-be-obsolete bots that are are currently operating.  Today I made an additional modification (now up to bot 13_20) that both increases the average stock market returns and reduces the number of trades required.

Market conditions are pretty much unchanged since my first bots began operating.  Internals are on the bullish side of neutral, and the long-term trend remains positive.  Since closing at an all-time-high of 1709 on August 2nd, the S&P 500 index has fallen 3%, which doesn't yet count as an official correction in my book.

Friday, August 02, 2013

Better and better

Not only has the S&P 500 index recently crossed above 1700 for the first time in history, but I've made even more tweaks to the market bots (now at version 17), with bot A2 now returning a back-tested average of 13.1% per year.  Speaking of the bots, they've been in stocks since their creation two months ago, and the market has indeed risen.  It's not much of a track record, but it's as good a start as can be expected.

The "internal price forces" number is down to 5.9 from 6.0, but that's due to the slight differences between bot versions 15 and 17, not to any changes in the market.