Combining Zweig Screen with MACD Indicator
I really like the MACD indicator even though I usually don't use it in my trading. Since 2004 I've tracked the highest relative strength stock in the Zweig screen and also tracked the same stock and only buying if the MACD is bullish.
Since 2004 and rebalanced weekly that one stock has made 3723%. That's pretty good and worth a look, but the MACD indicator helped to produce a 7553% gain over the same period. That's even better.
I don't know why, but I have never tracked a modified Zweig screen buying only stocks with a bullish MACD. I started to track this this year and so far the results are promising. YTD that screen is down only .08% compared to heavier losses in my other screens (and in the indexes). I look forward to having a few years of data under my belt so I can see if the MACD "qualifier" has potential.
If you are interested in the MACD indicator, Zacks Research has a good article here.
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8 comments:
Rick,
If you do some research, please post it here. I'd love to here what you come up with.
Just to clarify - your stats are from buying at Monday open if the MACD is bullish. Do you sell if the MACD goes bearish or hold till it falls off the #1 spot on the screen?
Those are very impressive results. Would be interesting to see MACD run as a filter against the top 5 RS for a longer period. Certainly a 0.08 loss YTD is awesome!
Since you are looking at Keelix and are a Zweig fan, you might take a look at the Z26saTA screen which is the Zweig screen modified with some technical indicators.
Roger--I buy on Monday and hold through Friday and sell over the weekend if anything changes during the week.
I'd like to see the MACD over a long period of time, but I haven't figured out how to backtest something like that yet.
Let me know if you have any ideas.
Is this from Jan 2004 till Feb 2008??
is the MACD indicater frequency daily or weekly?
Daily.
how do you find the highest relative strength stock in the Zweig screen?
AAII's stock screen lists the relative strength of each stock and allows you to sort using it.
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