Smaller cap stocks have outperformed 6 straight years in a row (and so
far into this year as well.) The equal weighted S&P 500 is outperforming
the Cap weighted index. Your larger sample size includes a broader class
of the performing issues. Just as an FYI... the last time we had 6 years
of small cap out-performance was 1976-1982 which was also a period
marked by rising commodities, inflation, and interest rates...sound
familiar?

Regards,

Duke Jones, CMT

sebastiandanconia wrote:
> Two points.
>
> First, I've also noticed that tested returns improve when the initial
> selection-pool is larger, but that's only logical.  More and
> better-quality choices should result in more and better-quality trades.

> Second, look at your selection-pools.  The SP100 and SP500 are
> capitalization-based indices containing some of the most over-owned,
> over-valued stocks in the entire market.  By expanding your selection
> pool to include stocks that are less widely-owned and better-valued
> than the already over-popular favorites you're getting a better return
> on your investment.
>
>
>
> Luck,
>
> Sebastian 
>
>
>
> --- In [email protected], "Ara Kaloustian" <[EMAIL PROTECTED]> wrote:
>  
>> I am getting some results that I do not understand why
>>
>> Am testing using relative strength... will not describe system,
>>    
> because I don't beleive the specifics are relevant.
>  
>> My issue is that I get significantly better results with larger
>>    
> watchlists:
>  
>> Example:
>>
>> S&P100       ==== >   7.75%
>> S&P500       ==== > 13.00%
>> List of 1500  ==== >  23.00%
>>
>> Am not using scoring variable.
>> Max positions variable of 5 and 25 have very little effect.
>>
>> Does this make sense to anyone???
>>
>>
>> TIA
>>
>> Ara
>>
>>    
>
>
>
>
>
>
>
> Please note that this group is for discussion between users only.
>
> To get support from AmiBroker please send an e-mail directly to
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>
> For other support material please check also:
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>

> Yahoo! Groups Links
>
>
>

>
>
>
>
>
>  


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