FAQs Frequently Asked Questions
That is understandable, but instead of using all of our services, some of our members strictly use the signals issued by the market direction model with a 1-times ETF such as QQQQ. You can see from our track record shown in the first two tables here that the big gains made when the model is right more than make up for the small losses along the way, thus the model's long term returns of 33% per year using the NASDAQ Composite (a 1-times ETF such as QQQQ would be the equivalent).
The other risk is that it is nearly impossible to know when the market will calm down, how long a trend will last, and when the market will become volatile again. So over the years, I realize that when it comes to the market direction model, it is best to weigh each change of signal the same, thus the same position size in a normal or inverse ETF each time there is a signal change tends to yield the best results.
First published: | 15 Mar 2011 |
Last updated: | 10 Jun 2016 |