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----- Original Message -----
From: Jeff <jcob3@xxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Sunday, November 28, 1999 6:02 PM
Subject: Re: bull/bear fear- tested
snip snip
( I am not a great believer that a system
> has to beat buy and hold to be a good system).
snip snip
Good point.
For many years I thought that if my system couldn't beat buy and hold that
it wasn't a good system. Then I started scrutinizing my trades on one system
and found the system was only in the market 10% of the time. This was tested
on one stock at a time. I forget the exact figures but the idea was that if
I can make an 8% return with a system that only holds a stock for 10% of the
time then what happens to the other 90% of the time. What do I do with my
money then? Ideally my system would find another stock and keep me fully
invested all the time. So my annual return would be something like 80%
without compounding. Hmmm. Idealists! Bottom line is buy and hold stats are
very misleading on some systems. That was a long time ago and I've since
dropped the system for other reasons. Still looking for the wholly grill.
Maybe I'll find it in Latchpot Idahole<g>.
Good trading
John Manasco
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