How much data do I need for a stable analysis? (EOD)

As a general rule you should try to analyse enough data so that ST can find a cycle 3 cycles longer than the cycle you want to trade. In order to ensure that ST finds that longer cycle, you should analyse enough data to find 4 of those cycles.

So for instance if you want to trade the 40 day cycle: 3 cycles longer is the 40 week cycle. Therefore you should analyse 4 x 40 weeks of data, 160 weeks, which comes to about 3 years of data.

(3 cycles longer than [Cycle to trade]) x 4

Please note that 3 cycles longer than refers to Hurst's nominal model and the order of cycles in that model. For reference the order of those cycles is:

• 5 day
• 10 day
• 20 day
• 40 day
• 80 day
• 20 week
• 40 week
• 18 month
• 54 month
• 9 year
• 18 year

For more information take a look round the Hurst Cycles Trading Academy. There is also more information to be found in the Online User Manual.