May 30, 2011

Here are the results of the test using the original version of the QQQ and QID Trader trading script as found on the old Wealth-Lab 4 site. (Note: the old Wealth-Lab 4 website has been shut down. It has been replaced by a new one).

 QQQ Trader Original Version

(click to enlarge)

What stands out is that it had a hard time to beat the Buy & Hold strategy. And as such, does not prove that it has a significant advantage over the Buy & Hold. As if the strategy kept you busy for 5.83 years generating over 15,000 trades to provide about $ 27,000 more than the Buy & Hold. Not what could be called a great performance! At least, it survived and did not destroy your portfolio.

Then a question remains. What were the settings needed using the Alpha Power simplified equation to produce these numbers? Well, here they are: 

QQQ Trader Orig Ver Equation

(click to enlarge)

The original script did not use leverage, did not have a bet sizing algorithm, and did not have a covered call program, no piggyback trading module installed and no excess equity buildup utilization function. It should be no surprise that the performance achieved was what it was.

Here are the corroborating charts produced on the old Wealth-Lab 4 site:

(click to enlarge)

AAPL ADM AGQ AMZN
BHH BIDU CCK CF
CMG CRDN CSX DBS
DDS DIT ERX GLD
GTLS IBM IMAX IPGP
JNPR NFLX NTES PAAS
PANL PCLN SCCO SINA
SLV SLW SOHU SRZ
TBL TDSC TRMB TRN
TSCO TZOO ULTA URI
WLK WTW XOP  

( click to enlarge)


Created on ... May 30, 2011, © Guy R. Fleury. All rights reserved.