This is a mechanical system based on the S&P 500 going back to 1961 and utilizes a monthly chart of the SPX and a variety of indicators for long term buy and sell singals such as our BPT MA Deluxe, RSI, MACD/BB, and Bollinger Band. This system has caught every major bull/bear market and greatly out-performed simple buy and hold, which the majory if 'lazy' financial advisers have their clients follow today.
The system is a long term system mainly suited for non-traders such as mom and pops, who are trying to manage their 40lK or IRA retirement accounts and want to greatly outperform the 'buy and hold' mantra on Wallstreet and that most brokers and investment advisers preach still preach. However this system is somewhat boring, and what I affectionately call 'like watching paint dry system' because it only averages about one trade per year! Therefore again, this is not a system for those of you who want and crave action! However as you will see from the table of statistics below, as well as the video, the system has done very well and you will greatly outperform the masses via this system.
Below are the statistics for the Long/Short version of the system, as you can see it destroy's the typical Buy and Hold approach that so many of today's typical financial advisers preach to their clients - as you can see this system would have returned over 360 times one's initial investment vs 27 times for buy and hold. Also I show the statistics table, you can find chart examples showing the system trades.
The table below - shows ONLY Long trades and no Shorts. Why do I show a Long Only version? Because most people who work a day job and are not traders cannot Short the market in their employer based 401K, they can only move their money out of the market into Bonds or Money Market. The Long only system was out of the market for 32% of the time or about 16 years vs 51 years the system has been active. During the years while the system rode out bear market declines in a Cash or a Money Market fund where it would have gained a nominal interest rate. I assumed VERY modest gains for the time in Money Market Fund. Currently the system would have returned 167 times your money vs 27 times via buy and hold.
Here's the chart examples showing the trade history of the system - not prefect, but not bad at all, keeps in you long term bull trends and catches the bear markets as well. In most cases however the system does a better job at going long just off the major bear market bottoms, whereas it's a bit later to pick the major tops - this however is typical and expected because market tops tend to be a process, tops are harder to pick than market bottoms which can be quick, fast, and emotional events. Greed and Fear have differnet efffects on the market and this is how it manifests itself.
And here's a chart showing how the system would have traded the very volatile 1960's and 1970's.