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    There are many Market Timing Systems out there. Which ones should you use ? Which ones should you ignore ? Here are some tips to pick the good systems from the bad ones. You'll also find how to build your own Market Timing system by combining several sub-systems.

    Rationale

    There should be a rationale behind any system you use, especially why it provides superior results.

    For instance, in The Right Stocks at the Right Time, Larry Williams shows that the stock market has never lost money in years ending with 5 (1895, 1905,..., 1995 and probably 2005). However, he does not provide any explanation and I don't see any, therefore I'm not comfortable using suc
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    systems from the bad ones. You'll also find how to build your own Market Timing system by combining several sub-systems.

    Rationale

    There should be a rationale behind any system you use, especially why it provides superior results.

    For instance, in The Right Stocks at the Right Time, Larry Williams shows that the stock market has never lost money in years ending with 5 (1895, 1905,..., 1995 and probably 2005). However, he does not provide any explanation and I don't see any, therefore I'm not comfortable using su
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    ationale

    There should be a rationale behind any system you use, especially why it provides superior results.

    For instance, in The Right Stocks at the Right Time, Larry Williams shows that the stock market has never lost money in years ending with 5 (1895, 1905,..., 1995 and probably 2005). However, he does not provide any explanation and I don't see any, therefore I'm not comfortable using su
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    or instance, in The Right Stocks at the Right Time, Larry Williams shows that the stock market has never lost money in years ending with 5 (1895, 1905,..., 1995 and probably 2005). However, he does not provide any explanation and I don't see any, therefore I'm not comfortable using su
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    5, 1905,..., 1995 and probably 2005). However, he does not provide any explanation and I don't see any, therefore I'm not comfortable using such signal in a Market Timing system.

    Simple Rules

    Rules should not be too complex. If they are, they're likely the results of Data mining (adapting indicators so that they fit past market behaviors).

    Favor systems that have simple rules.

    Quite often, complex rules come from simpler ones: some people torture the data enough to come up with an optimized set of rules that supposedly provide superior performances than the original system.

    As an illustration, in All About Market Timing by Leslie

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