Actual signals/performance "as it happened"are at Past MIPS/Nitro button on the top left. All other graphs posted on this page are from the very latest version of the MIPS/Nitro model. So, we named the model with verified signals MIPS/Nitro and with the latest version MIPS/Nitro5.
Our backtested results for new versions are highly reliable because: (a) over time, we have consistently developed algorithms that improved our then-existing models,
(b) after all changes, new versions of the software contain about 85-95% of the same code, and
(c) we do not release new models unless we are 95% sure they are better than existing models.
THE MIPS INSTITUTIONAL MARKET TIMING MODEL (MIPS/Nitro)
Registered Investment Advisors
This section of our website is for RIAs.
This page describes our Institutional, trend following trading model, MIPS/Nitro . We assume that the reader has read and understands our MIPS3/MF and MIPS4/MF+ models for market timing.
To understand the concepts and related performance herein, please at least read ths page and the others below:
1.) Market Cycles ..... button under the MIPS 101 tab on the main menu;
2.) Services ............... tab on the main menu;
3.) What to Trade ..... button under the Services tab; and
4.)FAQ ...................... tab in the Main Menu.
If you have questions or want additional info, send an email to email@example.com
or call our CEO/Founder, Paul Distefano at 281-251-MIPS
Even though both of our MIPS3/MF (M3) and MIPS4/MF (M4) timing models are great ones, we have developed an institutional version (MIPS/Nitro) that behaves quite differently under certain conditions. The Nitro model contains major advantages over the other MIPS models, namely:
A) Predictive Behavior:
The Nitro long/short signals are based on more "predictive" algorithms that "act" one or two days earlier than M3 or M4, and
B) Sideways (flat) Markets:
Many times, sideways markets are a death blow to quantitative models. These "consolidation patterns" usually result from a "tired" up market (or vice versa), trading in a relatively tight trading range (like plus/minus 3-5%).
There are basically two types of flat markets, namely:
(1) Those that meander up and down slowly over weeks and months.
- The MIPS models handle these "slowly changing" patterns in a winning fashion.
(2) Those that change direction every few days/weeks (high-frequency, directional changes - HFDC) - In these markets. the MIPS models abandon their trend-following algorithms
because, of course, these markets are "trendless". Without this, there is very high
probability that the models could get whipsawed.
- When the M3/M4 models go to cash, Nitro either does the same or it deploys
its new algorithms that are more predictive and fast enough to be successful in
trading high frequency directional changes ("HFDC").
Statistically, the MIPS/Nitro timing model goes into this "HFDC" mode only about 10-20% of the time. So, about 80-90% of the time, the Nitro signals can be the same (or very close) as the M3 and/or M4 signals. Hence, the trading frequency of these models will be somewhat similar for a majority of the time.
M3 is a medium-frequency trading model that tracks weekly/monthly cycles.
M4 adds predictive algorithms to produce faster/better gains and a "smoother" ride;
Nitro can trade similarly to the other MIPS trading models in normal markets, but Nitro has internal algorithms
that can transform it into a faster acting model (daily cycles) under certain HFDC conditions.
Nitro includes more "predictive" algorithms, and produces the best results with the lowest max drawdown.
With Nitro, we can sponsor the use of 2.0x leverage (or maybe just 1.5x leverage) on Long signals, but
only 1.0x or 0.5x leverage on Short signals for risk averse investors..
The Nitro5 model is like MIPS33 or MIPS44 on steroids !!!
(See Performance Below)
MIPS/Nitro Performance Summary (with leverage)
MIPS/Nitro55 3 Years
(Verified by TimerTrac.com)
Trading SPY/SH (1.5x long / 0.5x short)
< Starting with $10,000 >
MIPS/Nitro55 Performance 12 Years
Trading SPY/SH (1.5x long / 0.5x short)
< Starting with $100,000 >
"BLASTER SERIES MODELS"
MIPS/Nitro5 - "Blaster Series" (no leverage)
GREAT NEWS FOR MIPS RIA MEMBERS !!!
- The MIPS/Nitro Blaster Series Model was released in 1Q'16
We spent 15 months developing new quantitative algorithms that resulted in some of the very best market timing models available today. We call this version of our models the "Blaster Series". The main contribution from Blaster is how our trend following models now know how to navigate "flat markets" (aka sideways trading patterns, consolidation patterns, etc.) that change direction every few days, but go nowhere.
The results*** are a developer's dream: 1) the CAGR of the current Nitro MIPS/Nitro55 Blaster model is 55% higher than its previous
version, and it's approximately 2.65 times higher than our original version;
2) the Maximum Drawdowns have been reduced by about 35%; and
3) the average number of annual trades remained about the same as before. *** No Leverage Blaster Series PerformancThru June 2018 (no leverage) < Starting with $10.000 > ................................................................................................................................................... .........SPY...................Nitro55....... .....MIPS44.......MIPS22.....MIPS3
Most individual investors are taught to simply buy and hold, even in down markets. They are also told that (a) no one can time the market and (b) they should never consider short trades. And somehow, the SEC made it illegal for "retail" fund managers to execute short orders in their portfolios. But, everyone must have forgotten to tell the hedge fund managers this, as they have been making billions of dollars for the last 35 years.
MIPS Timing Systems, LLC, was formed to provide stock market timing signals for individual investors to help them make money in both bull markets and bear markets like the high-profile professional money managers do (that is, like hedge fund managers that can trade long and short as they see fit).
The MIPS Timing Systems models analyze the stock market and provide information to our members when the models issue buy, short, and/or cash "signals". The MIPS trading system uses the S&P 500 Exchange Traded Fund (ETF), the SPY Index Fund, to represent the market and uses SPY in one of its index trading strategies. MIPS is not for high frequency online trading or for day traders.
Most of the information regarding the stock market direction provided herein is derived from quantitative models and algorithms owned and developed by MIPS Timing Systems, LLC. These are made up of numerous technical indicators, some of which are published and some of which were developed in-house. These technical indicators are looking for new stock market trends and the exact time that the market changes its trend line from up-to-down or vice versa (i.e., an "inflection point" in the stock market trend line). This provides our members with new tools for timing the stock market and to better manage their stock market investments.