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Market Timing

Monday, January 20 2014


As most MIPS members already know, we show several possible trading profiles for our MIPS models under the "Services" tab on our main menu at www.mipstiming.com (and more under the "Trading Profiles" button on the Services page).

Also, I have said many times that you can trade any ETF that "correlates" well with the SPY (from Investopedia => http://www.investopedia.com/terms/c/correlation.asp ).  Trading SPY/SH is the most conservative trading profile for our long/short MIPS models. However, we will show and will expand upon, more aggressive trading profiles herein.

For aggressive investors, we recommend trading a "mix" of ETFs, like 1/3 each of SPY, IWM, SSO or 1/4 each of SPY, IWM, QQQ, SSO on long signals and their respective inverse ETFs on short signals (SH, RWM, PSQ, SH*, where *SH is the single leverage inverse fund for SPY because we do not like double leverage on shorts).

See, for example, the results below from trading 1/3 each of SPY/SH, IWM/RWM, SSO/SH long/short:
BTW, on short signals, remember that your options are: (a) 1/3 each of SH, IWM, SH as in #1 below, or (b) 50% each of SH and RWM, or (c) 100% RWM, or (d) 100% SH.

I.)  MIPS4/MF+ Trading SPY/SH from 2007-2013
      CAGR since Jan'07 SPY=+6.1%  vs. MIPS=+31.3%   Max Drawdown= -10.6%

  
II.) MIPS4/MF+ Trading IWM/RWM from 2007-2013
CAGR since Jan'07 SPY=+6.1% vs. MIPS=+36.9%   Max Drawdown= -15.1%


III.) MIPS4/MF+ Trading SSO/SH from 2007-2013
CAGR since Jan'07 SPY=+6.1% vs. MIPS=+52.7%, Max Drawdown= -16.1%

 

Good "mixing" to all !!!

Posted by: Dr. G. Paul Distefano AT 05:23 pm   |  Permalink   |  Email

MIPS Timing Systems
P.O. Box 925214
Houston, TX  77292

An affordable and efficient stock market timing tool. Contact MIPS
281-251-MIPS (6477)
E-mail: support@mipstiming.com