20120519 - Saturday, May 19, 2012

What is your approach to investing?

This Way We really tried to avoid building our own market timing system – a few attempts revealed how much effort it might take to do it right. But our dissapointments with other’s methods brought our passion back out, and we knuckled down and got to work – years of work.

Our Investment Approach

We didn’t attach ourselves to a particular view of the future, so that freed us from attempting to figure out where the market was headed a year out. We knew that ten percent market losses have occurred more than once every two years on average, and bear market losses (typically reaching 25-35%) showed up about once every four or five years. Therefore, we made the ability to discern near-term market direction a high priority in our development.

How can an investor really move advantageously against the market? We spent many months on fruitless paths, testing hypothesis that produced inconsistent results – but with persistence, the breakthrough finally came.

We do not expect to be number one every year – we’ve seen the blow-ups from systems that produce extreme results for a year or two, but then reveal their over-reach and fail dramatically. However, we do think our system will produce results that keep us near the top year-after-year, and provide superior results with less risk to subscribers on-average and over time. We are pleased to be able to invite you to climb to investment success along with us.

Generalized Results

The following are the original, generalized backtesting results using the unleveraged Climber model on eighteen years of market data:

  • the model had only one year with negative returns, compared to five years for the S&P500
  • the model had only one year with negative returns greater than 10%, compared to three years for the S&P500
  • the model had ten years with positive returns greater than 10%, compared to eight years for the S&P500
  • the model had total return for the testing period that more than doubled the total return for the S&P500