- What are the signals exactly? Are they based on the reversals he publishes on Socrates now ? Since I remeber MA saying the signals are only available to corporate clients.
Those are reversals (major, I'd say). You can use major reversals only or minor and major reversals for more frequent trading. There are even 2 more reversal levels. Those can all be included or left out and just focus on majors only
https://www.armstrongeconomics.com/products_services/socrates/reversals-are-scalable/- Assuming the "system" is long: When is the long position closed and a short position entered? At the first reversal, or second, or third or forth?
the first
- At what price is the new position entered? Since the market must close the month below the monthly reversal (in case of a potential new bear market) is the trade executed at the close of the month (in the last hour or so) or on the opening prices of the new month. Makes sometimes a big difference.
It's the closing price. Only when it is really close to the reversal, one would probably wait until the next business day but that is not considered in this calculation because I don't know the exact reversals.
Also I would not call adding to a position (leveraging). I would call it pyramiding.
correct, but you can still leverage the pyramid.
Also why does the run end 2016 at Dow 17000. It would be interesting to see the results of the move to 27'000 (easy) then down to 24'000 then up to 27'000 ten down to 22'000 then up again to 27'000 now (all not so easy !).
The chart was posted in Feb. 2016, but in general , consolidation periods are not a strength of the reversals when using them as buy/sell signals without arrays.
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Please read on page 305/306 about the nonsense that is spread about Armstrong