Monday, February 02, 2009

Red Light/Green Light Trading System From Henry Carstens

Well, I had just polished off a chart for my next post when an email from Henry Carstens came to my inbox. It appears that he has just put together an automated swing trading system for the S&P 500 Index that is always in the market. The signals typically last between 1 and 12 days and, backtested to 1997, have been accurate 61% of the time for an unleveraged average return of 17% per year.

Henry and I had discussed the idea of turning such a system into a "red light/green light" set of sell and buy signals for traders. It seems as though he's taken the ball and run with it and now is posting the red and green lights free of charge on his website. Sweetness. For those interested in more of Henry's thinking, check out his papers online.