Systems, page-32

Yes Sci I'll be trading EOD and I am expecting CFD trades to be open for from 1 to 5 days max.  I'm also working on a long only system to trade low cap spec stocks.  I'm not sure about market timing indicators.  I've had a look at possible Sector Index timing indicators but found that the trade direction signals most of the time precede the Sector signals particularly for the large cap stocks in each Sector.  The last thing I'll test during system development is the impact on the system of the general overall market timing indicators.  I remember doing a Systems Development on-line course where the example used was an E-Mini eod breakout strategy.  What we found was that the best signals were the ones that occurred when the market, the S&P500 in this case, was going in the other direction.  So I'm hoping that my best signals will occur when the market or related sector is going in the opposite direction to the trade and is somewhat over extended.  All a bit unintuitive, like having a mean reversion system without it being a mean reversion system.  If you can find this sort of non-intuitive signal you are one step ahead of the bulk of retail traders.  I'll have to wait and see how the testing goes.