My New Efficiency Trading System
In Tharp’s Thoughts this week – I talked about my new efficiency trading system. Since then, some people have emailed me asking exactly how I screen for efficient stocks.
The purpose of the efficiency screen is to determine what stocks are going up in a straight line. I don't plan to share my specific formula, because then people will be asking, "Why didn't you do this or why did you do this?"
The purpose is to find stocks that are going up. You can find that with any trend following filter. And any such filter will still require that you screen the charts of all the stocks that the filter brings up.
If you'd like such a filter, then it's described quite well in Safe Strategies for Financial Freedom. Efficiency filters are also described in Trade Your Way to Financial Freedom.
Lastly, my business is to teach you how to fish, not to hand you the fish.
And the purpose of the efficiency filter is to give you an example of how to lay out a system in terms of beliefs and how to test in real time. Thus, for people who ask for an entire list of stocks, that's handing you the fish and that's not what we do at the Van Tharp Institute.
Van









Comments
Nice call on SCT. Down 75% today. Hard to find a better short than that!!!
Posted by: Bill Williams | July 31, 2006 06:32 PM