StrategicTrendTiming

Retirement Savings Plan

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4 June 2010

Introduction

 
  • Our system can be used with leveraged or unleveraged investments.
  • We provide three plans: Long/Short, Long/Cash and Short/Cash.
  • Since January 2004, the Long/Short Leveraged Plan using the NASDAQ-100 has produced a total return of 644%, compared with returns of 11.9% using an unleveraged Buy and Hold Strategy.

How it Works

The retirement savings plan generates signals based on the NASDAQ Composite Index. At the end of each trading day, our system evaluates the market and determines if there is a change in our position. If a signal change occurs, then we email and call our subscribers to buy or sell prior to the next day's market close.

We have found that we achieve the best long term results when we use one or more of the following products.

 
QQQQ
An ETF that correlates with the NASDAQ-100
  ONEQ An ETF that correlates with the NASDAQ-Composite
 
QLD
A Profunds leveraged ETF - Long
 
QID
A Profunds leveraged ETF - Short
 
Profunds
NASDAQ-100 tracking mutual fund
 
Rydex
NASDAQ-100 tracking mutual fund
 
Direxion
NASDAQ-100 tracking mutual fund
 
NQ
The NASDAQ-100 E-mini future contract

This is a strategy which usually requires only 3 to 5 switching events per year when market volatility is low to normal. (VIX under 19). As a result of this, the system is ideal for Long Term retirement planning. Thirty seven years of back test data show the viability of this plan for wealth creation (including its good performance in the difficult year of 2008).

The system was designed to work best with Nasdaq-100 oriented funds. In the past, the best ETF has been the QQQQ. However, this year the S&P 400 and Russell 2000 have had the best performance.

There are two strategies we follow within this system. With a Buy signal, you will purchase one or more of the "LONG" funds. With a Sell signal, you will go to cash or, ( if you are following the Long/Short strategy) you will purchase one of the "SHORT' funds. The signals are provided the evening prior to the day that it is to be executed. If switching within a mutual fund, place the order prior to 3:45 PM EST..

There is a third, less used, strategy that can be employed using these signals. It can be useful for the "PermaBear". (One who never wants to be Long the market) That person would simply buy Short funds on a Sell signal, and would go to a MM fund on a buy signal. This plan worked quite well in 2008, and it has worked quite well so far this year.




The TimerTrac data does not accurately reflect the results for 2008 for two reasons........

1. The QQQQ closed at 51.22 on Dec. 31, 2007. We were in a SELL/SHORT position at that time. TimerTrac did not begin tracking our signals until Jan. 25, where they put our position in a SELL or SHORT state at a price of 43.99. The QQQQ closed at 45.13 0n 1/31, at which time we broadcasted a BUYsignal. Doing the math, this made it look like our LONG/SHORT strategy had lost -2.5%, whereas it had actually gained 13.5% (unmargined) from 12/31/07.

2. The second discrepancy was a result of an oversight on the part of our service. We generated a BUY signal on July 24 and thought we had sent out the informational emails. This turned out to be untrue and we did not learn of the mistake until Aug 14. Unfortunately, the QQQQ price on 8/14 was at a much higher price that it had been on 7/24. This difference has reflected poorly on our overall performance (as recorded by TimerTrac). But, even with this late entry the performance is still very good for the year.

NOTE: We were not broadcasting these signals to the public at the time the July 24 mishap occurred. (At least not on our web-site) We did start promoting this trading system on August 14, 2008. The great Sell signal call that occurred on August 27 was a once in a decade event. We are so proud to have called it.