THE Proficiency Point

The VectorVest RealTime Derby appeared to becombines the Percent Winning Days, the Percent
very first proven during the New York Traders ExpoWinning Trades and Maximum Drawdown Percentage
in February 2009. This comes with happen to be aninto a single item called the Efficiency Factor.
fantastic and fascinating approach ever ended upIs 18.92 any good? Well it's not bad, but the next
being. More than that, it also has established to be anbiggest gainer is "Thornton's Thunder," which had a
extraordinary resource of information and facts.Total Gain of 49.23% and has an Efficiency of 24.84.
In a day-to-day basis, it monitors and also displaysFrom what I can see, Thornton's Thunder had the
the results of 185 10-stock portfolios tick-by-tickbest combination of Total Gain Percent and Efficiency
through the point in time the market starts up until itduring that particular up wave.
ends at 4:00 PM. With the Derby, you will discoverInteresting. What Strategy had the best Efficiency
completely no issue discovering what is actually goingover that time period? "Great Stocks," with an
on in the market place and today was no distinct.Efficiency Factor of 32.06, but it had a Total Gain of
The major indexes opened sharply lower, however ,only 3.96%. So it seems that there's a trade-off
the Derby has been exhibiting Bullish approaches asbetween Total Gain and Efficiency.
the greatest gainers in early trading.Of course there is, we've seen it over and over
The leading Strategy was "Best Performers >again. The most effective Strategies, those that give
$1.00." I clicked on the performance bar to see whichthe highest gains, are those which return volatile,
stocks were in the portfolio and saw thatlow-priced stocks and the most efficient Strategies,
Power-One, PWER, had gapped up about 20% atthose that produce relatively modest gains, are those
the open and it wasn't pulling back. I took a look atwhich return less volatile, higher-priced stocks. That's
its one-year graph and saw that this stock wasno surprise, but is it possible to use the RealTime
trading at about $1.30 per share last September andDerby to find Strategies that will be both effective
it's now over $12. Did I miss a good stock here?and efficient? Yes, I believe so. Next week I'll report
Sure I missed the early moves, but the stock stillsome surprising things I discovered by using the Tote
looks interesting to me. It has gapped higher on highBoard and The Efficiency Factor.
volume several times since last September andEFFICIENT PERFORMERS.
certainly looks like it's going higher. I bought some.The Price of the VectorVest Composite hit a low
Then I opened the Tote Board. This tool is mypoint on July 6th; then shot higher for several days.
favorite part of the Derby. It shows the cumulativeIt was time to go long. When would you have gone
performance of all the Strategies over any timelong and what Strategy would you have chosen?
period since August 18, 2009. The calendar forLet's see what Mr. Jerry D'Ambrosio did to make his
selecting the beginning and end dates of the testselections. Visit the VectorVest University to see this
periods was updated recently to show the C/Up andweek's "Strategy of the Week" presentation:
C/Dn dates given by our Market Timing System. For"Efficient Performers."
example, the best performing Strategy for theMANAGING THE MONEY MAKER.
Upwave which started on 02/19/10 and ended on 05Last week, we illustrated three trades on selling
07/10 was none other than "El Cheapo Cheapos,"Covered Calls which were based on using the Options
with a Total Gain of 51.95%.Rate of Return tool and the "Optionable 2x4s"
Are you kidding me? What kind of record does itStrategy. Two of the trades were profitable, one
have? Well along with its terrific gain, it had 62%was not. None of the trades were managed. This
Winning Days, 42% Winning Trades, a Maximumweek we will illustrate how all of these trades would
Drawdown of 27.43% and an Efficiency of 18.92. Anhave been profitable, had we used the portfolio
Efficiency of 18.92, what's that all about? It'smanagement guidelines given in the PayDay Portfolio
something that VectorVest calculates whichReport.