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Randy Dunham's avatar

Great post. Now this is value, well done.

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Pants's avatar

thank you very much Randy, means a lot coming from you!

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Shane's avatar

Thanks for sharing. Curious how do you calculate the growth and inflation indices? Is it simply calculated off GDP and CPI?

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Pants's avatar

I’m only about 2 years into a fully focused lifestyle around trading so there are many things I still need to work out personally I will admit. So I may not have a perfect approach but the backtest does speak for itself.

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Pants's avatar

The Growth and Inflation indices are composite measures that track a basket of leading and coincident data from FRED (industrial production, retail sales, PMIs, employment, CPI, PPI, etc.), normalized into directional momentum scores. The goal is to try to measure the acceleration or deceleration of growth or CPI. All together there are 14 components used for growth and inflation. If you dm me on twitter I can send you what I use. The weightings is what really counts for a good measurement.

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Shane's avatar

Thank you. Will dm you right away. Just followed.

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