I started collecting market data on a daily basis after the dot-com bubble era. Last year (2006), my system was based solely on tracking the I-fund. With this system, I was able to achieve over 32% in 2006. This year I incorporated the C-fund and the S-fund into the system to be tracked alongside the I-fund. The database that keeps track of the funds individually is called the "EbbTracker."
The "EbbChart" was designed to show all three separate funds being tracked at the same time. A green (buy) or red (sell) signal is assigned to each fund every singe trading day. For the most part, this is how the system goes: two or more green signals, we go to equities (S/I-fund); two or more red signals, we go to safe haven (G/F-fund). The new system enables us to cross-check the funds against each other and help us determine our move for the day. On a sidenote, the new system has beaten the old system (ebbtracker's I-fund) in eight of the nine months so far this year.
I won't go into detail on how I gather my data, but I can say that these are entered and saved into the ebbtracker. These crunched-up numbers are like snapshots of past historical market patterns. The thousands of accumulated patterns (off-shoot patterns included) are used to compare it with today's market patterns. From the matching patterns, we get to identify the trends (uptrends or downtrends) that develop, and last but not the least, the cycles are used to define the length of the trends. That, in a nutshell, is how we get the green (buy) and red (sell) signals for each fund everyday.
- Eb