Subject: Re: Using the Nasdaq NH-NL Bear Catcher
if you are going to use these in combination or alone to create a trading system you've completely missed the point of my post.
Agreed. If I understood your post correctly, you said that although NH-NL did help avoid the 2022 bear market, it stayed bearish too long, and did not get you back in early enough to capture all the bull market gains of 2023. And your main point was that "it has its uses, but you have to understand it well before using it for your investing." Which, of course, I agree with.
Also, as a practical matter, most investors don't sell completely out of stocks and go 100% to cash, due to the hefty taxes they would incur in taxable accounts.