So long positions were maintained during continued market declines which began eating away at previous gains. A second generation trading program was created in August 2000 by adding daily trading signals to the first system. It acted on Japanese windows and traded against the trend. It also traded against large moves in excess of five percent. This work until the market began prolong declines.
Large declines proceed large declines.
We are now into our third generation program which was activated on April 20, 2001. This program was based on the first generation program which only trades on Fridays. This version was created using bull and bear market data. The program reduces risk by moving capital into money market as risk increases. Risk increases as an investment moves closer to an overbought or oversold condition and during extreme moves.