No. of Recommendations: 0
"As of now, the original 5,000 is about 15,000. I am now sorry to see your results from the backtest. Makes me worry about what I have done and about whether I can hope the gains will persist.but I still am not so negative about your results. Yes, the volitility is very high. But so is the CAGR. What is lethal about that? I guess I am just not very sure about how to interpret the results when they fall into this very high range."
The issue of how to treat and strategize around relative strength is wide open, IMHO, in spite of the great number of backtested RS screens we've produced out here. They're inconclusive, though they show the power winners have. Precisely what time-slice on relative strength works best is one issue (I've been admiring the work done on this by Elan, GrandPoobah and others), and volatility is another. I worry that we may get too granular for our own good on all of this, if we look for perfect RS equations based on perfect holding periods.
It is history, after all. What we do know is that winners tend to continue to win.


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