Detecting deterministic dynamics in stock prices

It may appear odd to many investors, but stocks that are less volatile than their counterparts have historically produced comparable or better returns. However our analysis of stocks which display long periods of deterministic dynamics perform much better than those which tend to trend sideways over long periods. We have applied the MACD-V indicator to scan the S&P500 stocks over 100 days.

 We wanted to see how many days constituent stocks traded outside the 50 to -50 levels. Our research showed that those stocks which traded outside the 50 to -50 range performed much better than those which traded inside this range.

Here are the performance results for stocks which traded outside the 50 to -50 levels for more than 80 days out of the maximum 100 days using the Elasticity2 trading system.

Here are the performance results for stocks which traded inside the 50 to -50 levels for less than 30 days out of the maximum 100 days using the Elasticity2 trading system.