GGT Timer Rules
I've been working with my colleague Bob Wilson in quantifying various aspects of GGT. As many of you are aware, GGT employs three timer systems:
- Short-term: uses a simple 4-day moving average to cross the Long-Cash Ratio (LCR) value, which is calculated daily. Buy when the 4d crosses the LCR from below, and sell when the 4d crosses the LCR from above. You cannot calculate the LCR but I can, and either Bob or I do it every day and post the results at my GGT forum @ Effective Volume.
- Intermediate-term: based on Dr. Alexander Elder's Force Index (FI) methods, this timer uses the slopes of the 13d and 34d EMA of the GGT prices, in addition to the sign (+ or -) on the 13d Force Index. Buy when the FI(13) is turning positive AND the slopes of the 13 and 34d GGT prices are (turning) positive;
- Long-term: a basic, keep-you-out-of-trouble timer based upon the 5d and 65d crossing of moving averages. Buy when the 5d crosses above the 65d from below, and sell when the 5d crosses the 65d from above. It's that simple. Not optimal, but quite simple.
- If concentrating on the short-term timer, then buy at or near the open of the market on the following day.
- If concentrating on the intermediate-termed timer, then review the status of the intermediate-term timer. If LONG or MIXED, then buy at or near the open of the market the following day. If in CASH, you are "enabled", but you must WAIT until the intermediate-termed timer moves to a LONG or MIXED state before entry.
- If concentrating on the long-term timer, then review the status of the long-term timer. If LONG, then buy at or near the open of the market the following day. If in CASH, you are "enabled", but you must WAIT until the long-termed timer moves to a LONG state before entry.