Long Term Mechanical System for SPX
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--- System Overview This is a mechanical system based on the S&P 500 going back to 1961 and uses a variety of moving averages and pivots. This system has caught every major bull/bear market and greatly outperformed simple buy and hold. 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 I have two very detailed tables that shows each system trade along with other detailed statistics. The first table - shows both (Longs and Shorts) trades for the system. Since 1961 the system would have returned about 140 times your money vs 17 times your money versus buy and hold. The second table - shows ONLY Long trades and no Shorts. I made the second table because most people who work a day job 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 over 9 years while it 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. Chart Examples - Also below the tables you will see some chart examples of the actual Trades
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The second table shows ONLY Long trades and no Shorts.
I made the second table because most people who work a day job 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 over 9 years while it 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. |
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Chart / Trade Examples of the System: |
