Following on from my last post looking at TSI rankings to choose the market to trade DVB, I thought I'd follow up on a couple of the ideas mooted in my last post.
The general idea is to trade the DVB on the market with the highest TSI score (Between SPY, QQQ and IWM).
I noted that the market with the highest TSI tended to have the best returns on the long trades (as you might expect). Following a similar theme, when the IWM (Russell 2000) had the highest TSI, short trades as a whole under performed, especially on the IWM.
So I looked at a hedge on short trades when the IWM was top. The theory runs that if the IWM has the