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| What were your past trading signals? |
Buy 4/1/94
Sell 3/17/00
Buy 3/16/01
Sell 8/3/01
Buy 9/21/01
Sell 3/8/02
Buy 9/20/02
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| How much does your service cost? |
The service costs $19.95 per month. Subscriptions will be automatically renewed.
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| Do I follow the current signal if I have just subscribed? |
If the Buy or Sell Signal has been issued prior to your subscribing to the service, you can initiate a position based on the current signal. This can entail some risk as the bulk of any gain may have already occurred. The other option is to wait until the signal changes and then initiate your position.
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| Do you follow your own advice? |
Yes we do. We have successfully used it for our 401k retirement accounts and non-retirement accounts.
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| How do I receive the signal? |
Once you have signed up, we will e-mail you the current signal. When the signal changes, you will be alerted by e-mail.
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| How do you interpret the signals? |
Buy Signal: A Buy Signal indicates that you should buy the index or go long the index. Going long means you are bullish on the market and the expectations are that the market will rise. You will hold your long position until a Sell Signal is generated.
Sell Signal: a Sell Signal tells you to sell your long position in the index and either put your money in a money market fund or short the index. Shorting the index means you are bearish on the market and expect a decline. You will hold your short position (or money market position) until a Buy Signal is generated.
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| How is the timing signal derived? |
The timing signal is generated by a proprietary regression model. Numerous sentiment and technical indicators were analyzed over the period of 1987-1993, and those that passed rigorous statistical tests were used to develop the model. An adaptive parameter was then used to derive the timing signals. The model does not attempt to do a market forecast, but rather looks for high probabilities of an intermediate market change.
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| How often does the system trade? |
Over the last ten years there has been on average less than one trade per year. This is not an active timing strategy. But as you can see from the performance page, the model has been very successful.
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