No. of Recommendations: 6
This is an idea strongly promoted by IBD. I think they put the limit at 8%. If that really worked, the academic world would have discovered it long ago. They have data dating back 100 years and could run the models on it to confirm or deny. There is no lack of grad students and computing power.

IBD has been publishing their data and theories for about 30 or 40 years or more . with their 8% limit and it appears they still have to sell newspapers and books to make a living.

Back testing serves no purpose. Past results is no guaranty of future results. If if works in the research experiment and turns in super results, are you going to put your money on the system based on last year's results and stick to the guidelines you yourself set? I truly question that because the times will be different, so the results WILL HAVE TO BE DIFFERENT

The only true system is to actually do the research and put your money on the table based on your goals --Something like what Saul does. The copy-cats hurt his performance because they don't have the same temperament as Saul does and there is a tendency for .copy-cats to attempt to front run It is very difficult doing what Saul is doing with everyone breathing over his shoulder. That could be a reason why his results have not been as robust over the past 3 years since he went public with this public site.

My hat is off to you Saul, but I believe you picked a hard game to win.

Best of luck
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