I have been running relative strength strategies for almost two years now and have tested hundreds of sets of rules. I have shared many of these with you over this period. The biggest thing that I have learned is how easy it can be to follow a set of rules and how much less stressful it is than having to make market calls constantly.

The TSX strategy that I have shared with you is a great example. Over that past two years, there have been many times that I have second guessed the strategy. Most recently, we sold Canadian Tire (CTC.A.TO) and bought Agnico Eagle (AEM.TO) and my original thought was "I don't really want to own AEM" but I did the trade because that is what the rules said to do and I have faith that if it is big winner, I will stay in the position and if it fails, my losses will be cut short. (Winners have averaged 37% and losers have averaged 7% and the strategy is up 23.49% compounded annually since inception and up almost 17% this year.)