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Subject:  Re: Slam-Dunk Mutual Funds Date:  6/5/2004  6:53 AM
Author:  joelxwil Number:  12033 of 18064

The timing cube results are with ETFs, which can be timed. Going short requires a Rydex or short fund if you are in an IRA. Otherwise, you can generally fund shares to short for your taxable account, though not always.

I agree that it is becoming impossible to time actively managed mutual funds. The people who run those funds have used the scandals try to trap people in their funds forever. There are without principle, since when they could they allowed timing if you had enough money (but often not for small investors), and when they got caught they have an excuse to ban people from their funds. Managing a mutual fund becomes much easier if you have captive sheep for customers.

In some cases, particularly at RS funds, customer service reps have given false information over the phone as to the availability of funds for trading. This is without excuse, but there is really no recourse.

Part of the problem is that they never define market timing; hence they can ban anybody for anything.

I have posted some FastBreak schemes on my site for trading ETFs and stocks.

Harry Larson has posted schemes for hedging on his site. For example, with his Signal = f5nsf:

When the signal is buy, hold the long combination of 75% ARGFX + 25% UAPIX

When the signal is sell, hold the hedged combination of 75% ARGFX + 25% UCPIX

This gives you about 38% average annual % with a drawdown of about 7% since 3/16/2000.

He has other examples, and you can get a free trial.

This might be an excellent alternative, particularly in a taxable account. You do need to rebalance at some point - perhaps quarterly.

However, what is needed is a way to trade stocks based both on fundamentals and technical analysis. CANSLIM works, but it is a lot of work, and there are money management issues. I am looking into ways to use Zacks list of highly ranked stocks and trade within them.

The problem is that the number one list changes rapidly - it has already this month had about a 30% turnover. So we need a way of trading from a changing list. I am working on it. Unfortunately, there is virtually no way to backtest trading from a changing list. Zacks Focus list changes less often, and there might be an advantage to trading from that.
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