Monday, 21 April 2008

Weirdness From CXO

I've had a very bizarre exchange this morning with the gentleman who runs CXOAdvisory.com about my trading system based on the Commitments of Traders report. Steve LeCompte, the author of that site, made a mistake in testing my setup for the S&P 500. He tests my setup with a one-week trade delay and finds inferior results to buying and holding the index. The only problem is my setup uses a three-week delay, as I make clear on the table linked here. He admits to making a mistake, but instead of removing his incorrect post or apologizing, he has just added my comments at the end. As well, he continues to display an erroneous chart showing the inferior results of the setup he tested, suggesting that those are the results from the "COTs Timer Strategy," when they're not. I've invited Steve to retest the data with the correct setup parameter values, which he says he will do. Very weird stuff from what is otherwise an interesting site, which by coincidence I had linked on my blogroll just a few days ago.

Update (1:20 p.m.): Steve just emailed saying he's removed that erroneous post and will retest the data. He'll post the correct results tomorrow morning.

1 comment:

R. Craig Pritchard said...

You are apparently not the first to experience this type of response from CXOA. Their site seems primarily interested in proving why trading is and always will be a losing proposition and that long term investing based on projected earnings growth is the only valid method. They also seem to revel in engaging traders and trading advisors in unproductive arguments that only seem to demonstrate that they have no idea what trading is about. If I were you I would remove them from your blogroll.