We first set out to create a good mechanical trading strategy. Using two different momentum based systems and filtering based on trend direction, we were able to get solid initial results. 

The MS-16 Strategy also employs a new indicator in OmniTrader
called Days to Earnings. This powerful indicator helps us avoid trading into a potentially dangerous earnings report.

But the real magic is obtained by using The MS-16 Strategy with the
MS-16 Dynamic Scan. This scan pinpoints the stocks that are outperforming the market but have made a significant pullback against the trend.

OmniTrader includes the ability to test how a strategy would
perform historically if it were traded with a stock scan. Armed with this ground-breaking technology, we were able to verify the substantial increase in performance by trading the MS-16 Strategy/Scan combo versus trading the strategy on a static list of symbols.

BIG Improvement w/ the Combo

By scanning the whole market for the best setups for our strategy,
we have a major advantage against trading a static symbol list.
The table to the right shows the results of trading two different
lists with the MS-16 Strategy.

The first column shows the results of trading MS-16 on the stocks
currently in the S&P 100. The second column shows the results of
trading MS-16 on the stocks that would have passed the MS-16 Scan.
The strategy actually performed well on both lists. But notice how the MS-16 combo was able to substantially improve EVERY category while maintaining the low drawdown!

The year-to-date performance of the MS-16 strategy on the stocks in
the S&P 100 vs. the dynamically changing stocks in the MS-16 Scan.
Using the Dynamic MS-16 Scan, we show a double digit improvement
in Hit Rate, three times the profitability, and over double the return!

The Profit Magic of the MS-16 Combo

The year-to-date performance of the MS-16 strategy on the stocks in the S&P 100 vs. the dynamically changing stocks in the MS-16 Scan. Using the Dynamic MS-16 Scan, we show a double digit improvement in Hit Rate, three times the profitability, and over double the return!