A new way of stock tracking that’s as reality-based as current company valuations, courtesy of Updata CEO David Linton. Echoes of Celebdaq…
“OK, it’s Friday and I couldn’t resist building on an idea mooted by a client recently. We have dubbed this the Paris Hilton Trading System. I started out with the idea that you buy Hilton shares in the US on good news about Paris and sell on bad news, or indeed the other way round. But the results were fairly mixed and deciding what constituted good and bad was getting difficult. The Optimised Stop for Hilton is 3% with a 5 day signal delay and you should not take signals during a breach or within 23 days of the stop signal.
So if you are trading news algos just take every ‘Paris Hilton’ on those stop conditions. The result is the Equity Curve below. “
