10 trades, 17 years, compounded 35% per year!

Long Term Weekly Trend line Trading Strategy – 0 to 4/6 or d/c

The long term minimal trading strategy has a 100% record over the last 17 years. However as past performance does not guarantee future performance clearly there is no guarantee!

Wave Counting

  • Use monthly pivots for your PRIMARY wave count, or just peaks and bottoms .
  • As provisional weekly pivots appear enter them to form the MAJOR wave count.
  • Provisional pivots may later disappear but still label them as they appear.
  • Up waves tend to have 5 pivots;
  • Bottom pivot is 0, up 1, down 2, up 3, down 4, up 5
  • Down waves tend to have 3 or 5 pivots;
  • Peak pivot is 0, down a, up b, down c, up d, down e
  • If one pivot is missing, eg 1 but you get pivot 2, then enter it where it naturally should fit (assumed pivot – this should be as a minimum a confirmed daily pivot).

Using your Trend Line

  • At a PRIMARY peak /bottom pivots start your trend line This is point 0.
  • Move trend line to next major count leaving the origin at 0 to 2/4 or 6 in an uptrend and
  • b or d in downtrend as the pivots are defined.
  • Go long or short when either the trend line is broken after major count 4 or provisional primary pivot, whichever occurs first.

Long Sep94                44.26

Short Aug00                         145.59 +101.33 (228%)

Long Mar03                 84.73 + 60.86 (366%)

Short Jan08              132.06 + 47.33 (473%)

Long Jul09                  94.13 + 37.93 (559%)

To 25Sep11              113.54 + 19.41 (602%)

Average compounded return over 17 years 35%

M – Monthly pivot – Primary Wave Count

W – Weekly pivot – Major Wave Count

P – provisional pivot

A – assumed pivot

WMD Long Term Trading Strategy

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