MSAR TRADING MODEL
Return on investment that has averaged 25.5%, CAGR, over the last
nine years (5/1997 to 8/2006)...and
"without leverage"!
<skip to chart>
THE Nasdaq Composite
Index chart in the
graphic window below shows the actual buy signals (green arrows) and sell
signals (red arrows), developed by PTR's proprietary MSAR trading
model (Modified
Stop And Reverse). The small spreadsheets
below the upper chart shows the approximate results obtained by this model
over the last 46 month period...between 10/10/2002 and 8/21/2006.
NOTE THAT: these returns are base on "NO LEVERAGE" what so ever, and could
easily be enhanced 1.5x to 2x just by using the full margin in a standard
trading account.
NOTE ALSO THAT: While using the MSAR signal from CMPX but by trading in
QQQQ options, the return "should be" materially higher, eventhough, we can
not support that with actual evidence because we are conservative traders
and do not use leverage. Besides, at the money options do not necessarily
reflect the true value of the underlying security, or index, at all points
in time, and the actual return could vary widely.
These signals are just one small part of the service
we provide to our subscribers, and for more information relating to this
model just scroll down to the text window below the graphic.
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TO VIEW PTR's actual PROFOLIO results for FY-2005, as delivered to investors
and subscribers on 1/6/2006, click here:
<MSAR Results 2005>
WHILE this MSAR trading model
"may" work on any "highly volatile" stock, stock index, or stock index
proxy, at PTR we only use it to trade in the Nasdaq Composite Index via
the NDX's proxy, QQQQ, since this index has proven to produce exceptional
gains when back tested to it's 1/1984 low.*
At the bottom of this graphic are
two small spreadsheet sections that calculate the approximate gains for
this model over the period from 10/10/2002 to 8/18/2006.
The upper spreadsheet shows a gain of "about" 129% for traders who
only BUY on the long signals and sell to cover (cash) on the short signals,
while the lower spreadsheet shows a gain of "about" 204%, during the same
46 month period, for the more aggressive traders who buy long on the buy
signals and then cover that position and go fully short on the sell signals.
NOTE*: This model was backtest using the
Nasdaq Composite Index (CMPX) to only 1984, since that is all of the full
daily data I have for this index...with volume. In addition, to
make this back test I had to construct a model of the NDX and QQQQ, prior
to 1997, by using the fixed ratios of 40:1 between NDx and QQQQ and 50:40
between NDx and the actual data for the Nasdaq Composite Index, CMPX.
Also note that the simplified spreadsheets shown here do not consider
the cost of commissions, so anyone using a full service, and full cost,
broker would have lower profits, and maybe even significantly lower profits.
NOTE THAT AS OF 12/2006: Since
we no longer keep up on this model on a "every week" basis --usually going
1-4 weeks as needed-- for those "subscribers" who would like to use this
model in their QQQQ or Nasdaq trading THEN please just email PTR and ask
for the software information.
Just keep in mind that you will need to
download, install, and set up the free software
<Wall Street Analyzer>
, or program the MSAR code into your existing trading platform, AND download
the data for the Nasdaq Composite Index yourself...on a daily, weekly, or
as you need it basis.
In our opinion, this model should be part of every QQQQ trader's box of tools.
BB
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For The Price-Time
Review
Ben Bonfoey and Andrew
Quiggly
Co-Editors
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is copyright(2003-6)
PriceTime LLC
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