2:30 factor

Atleast 5 different people have approached me to test out a 2:30 system
(Buy strongest stock at 2:30 use small stops, cover at close)

Refer to old post:
http://fnocharts.blogspot.com/2007/05/ideas-from-wd-gann.html


This system has been working in the past 200 days or so
Historically speaking this technique has not worked.
But lately its been working like magic, Reason??
We are in w5s on some degrees so we are overbought.
Bulls are piling up on anything that breaks out!! There is not much that is breaking out! Too much money chasing too few stocks.
Refer to old post (clash of the titans)
http://fnocharts.blogspot.com/2007/04/clash-of-titans.html


This buy anything that flies mentality is recent. People are ignoring diversification/fundamentals/A group/nifty because there are huge components of Nifty that are underperforming (auto/IT)
If i test the 2:30 system over last 200 days the results are almost as good as some of my other systems.
IF tested over last 2 years the 2:30 system fails, it doesn't even deliver returns matching buy+hold nifty. Use at your own risk :) (minor caveat the 2 year db is someone elses database: possible quality issues/ however keep in mind my emt systems (trend/countertrend) work on both sets of data equally well)