Insider Insights in Worldwide ETFs
A Behind the Scenes Look at System
Development and Evolution
Choices of Profitability and Risk
Hypothetical--Weekly
6.8 years June 21, 2002--March 27, 2009
See Comments below
The results are immediate and massive. Both lines start at 100%. The top line (the system) ends at 640%. The bottom line (the portfolio) ends at 130%. These are returns of 32% per year and 4% per year respectively. The system returns are due exclusively to selection and timing applied to the underlying portfolio.
Selection means continuously buying and holding the top two stongest ETFs in the portfolio or selling short continuously the two weakest ETFs in the portfolio depending on the market trend reported by timing indicators extracted from aggregatge portfolio price behavior.
But! . . . we do not like the observable volatility of the trip. Nevertheless, spikes up are exhilarating. Note that biggest ones coincide with portfolio declines. This is due to short sales by the system signaled by its timing indicators. Note, too, that the biggest down spikes occur when the portfolio is rising.
It is the downdrafts that are disturbing. However, if you can stand the trip, you arrive at destination six times wealthier than when you started. You have been doubling your money every two and a quarter years by reading the shortest weekly financial newsletter on the planet in 20 seconds or less.
Still, down spikes are abhorrent. They may kill you before you get fairly started. We must find a way to tame them.
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