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Relative Strength-Strong Report Summary

The following table is a summary of the various studies using the Relative Strength-Strong report from AIQ's TradingExpert for Windows to pick stocks to buy. The conditions for these studies were:

  • Use Dial/Data for market price and breadth information
  • Start with a $25,000 account
  • Reinvest all profits
  • Allow a commission of $33 per stock bought (or sold)
  • Ignore interest while out of the market, slippage, and dividends
  • Start the simulation with the buy signal on November 9, 1988
  • When an market ExpertRating of 95 Up (or greater) occurs, buy equal dollar amounts at the next day's opening price
  • Buy the stocks listed at the top of the Relative Strength - Strong report
  • When an market ExpertRating of 95 Down (or greater) occurs, close the positions at the next day's opening price
  • End the simulation with the sell signal on January 6, 1997
Simulated Average Annual Return
  S&P 500 1600 stocks
Long-Term Report, Random Timing Long-Term Report, Market Timing Short-Term Report, Market Timing Long-Term Report, Market Timing
Buy top-ranked stock 51.2% 45.5% 45.5%  
Buy 2nd-ranked stock     44.8%  
Buy 3rd-ranked stock     32.0%  
 
Buy stocks ranked 1 & 2 51.7% 28.3% 47.3%  
Buy stocks ranked 1 thru 3 38.7% 33.2% 42.3%  
Buy stocks ranked 1 thru 4 34.7% 41.2% 38.0% 41.8%
Buy stocks ranked 1 thru 5 31.7% 42.9% 38.3%  

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