Last week I wrote about a five year back-test I ran on a 10 stock portfolio in which I purchased stocks on Primary Wave Up signals and sold them on 'S' Rec's. This portfolio was long 100% of the time. Although it produced a profit, it revealed a number of problems that had to be solved.

First of all, I saw the portfolio go up time and time again in up markets and go down time and time again in down markets. Well, I already knew that was going to happen, so the solution to this problem was simple: Buy long upon C/Up signals and go into cash on C/Dn signals.

The second problem I saw was that selling on an 'S' Rec allows stocks to go up very nicely, but it also allows them to go down quite a bit before getting an 'S' rating. Somehow, I had to find an exit strategy that captured more of the gains. The third problem was that the portfolio typically peaked at the top of each up trend; then fell sharply just before the C/Dn signal appeared. So I had to find a way of reducing my exposure, i.e., raise cash, as the market trended higher.

I knew it was going to take a lot of work to find the answers to these problems, so I enlisted the aid of two Simulator Wizards: Steve Chappell and Angel Clark. As it turned out, Angel had been working on these problems for some time and had made considerable progress in solving them. So when it came time to find the best exit strategy, she knew exactly what to do. She found that using a G/L% of 50% gain and 30% loss gave the best results. This finding is consistent with work I and others had done.

Angel also knew how to reduce risk as the market went higher. She bought 10 stocks at the beginning of a campaign, but did not replace any of them as they were sold. In this fashion, she typically was underinvested at the end of each up trend. She also bought and sold positions at the Next Day's Open. In this fashion, she could place her orders at night and didn't have to be concerned with the market during the day.

So Angel took several techniques we have demonstrated for several years and combined them into a new, powerful, easy to use strategy. With this strategy, you buy the top 10 VST-Vector stocks at a C/Up signal; sell them upon hitting a 50% gain or 30% loss at the Next Day's Open; then go into cash at a C/Dn signal. What could be easier than that? It's called Easy Does It - C/Up.