Manuel Blay

inherent risks to a buy and hold position. We have devised the so called "Dow Theory Trailing Stop" which allows us select the best risk reward ratio (RRR) investments. Our Dow Theory Trailing Stop allows to cut your losses short and let profits run as the stop adjusts to market action. We don't invest in "secular" trends as advocated by Dow Theorist Schaefer (which may last 14 years). Such "secular" plays look impressive in hindsight but are unbearable (huge draw downs) when lived in real time.We also apply Dow Theory to the gold, silver and their miners. Since they all are correlated markets Dow Theory works well with them too. Secondary focus: The primary trend of the stock market may prove useful for swing traders (that is trades between 2-10 days). Set ups are established regardless of the Dow Theory but a trade is only taken in the direction signaled by the Primary Trend. Tests show an increase of performance (i.e. measured by average trade of ca. 20-30%). There are many variation of Dow Theory applied to short term trading like adjusting entries and exits to the prevailing primary trend, etc.