STATS: Sadowski Trend Analysis Timing System
After several years of research and trial and error, I developed a timed index investing system, called STATS, that can either supplement or replace one's current investing strategies. The STATS system (Sadowski Trend Analysis Timing System) is a rules-based, mechanical technical trend timing system. This superior investing system corrects the weakness of conventional equities investing, namely, destructive volatility and huge portfolio losses in major market turndowns and bear markets.
I believe that timed index investing is the answer to the quandary of finding high returns with minimal risk: timed index investing provides both high income and safety. Timed index investing is extremely simple, uncomplicated in portfolio structure in that most of your money is in a single index fund that is a leveraged ETF or mutual fund. Timed index investing does not use buy-and-hold allocation strategies, or re-balancing, or the like.
My trend-following equities investing system makes conventional allocated portfolios obsolete. The conventional wisdom is maintaining a pre-determined allocation mix of asset classes-- equities (stocks) to fixed income (bonds), with periodic re-balancing: the higher the proportion in equities, the higher the return but also higher risk. With trend timing, a single asset-class index ETF or mutual fund outperforms any type of diversified and asset-class diversified portfolio.
My proprietary system is rules-based and mechanical, using proven technical indicators to maximize profits through precise trend investing; these technical indicators also reduce risk to the lowest levels in equity investing, lower than any allocation strategy. Risk is extremely low by controlling volatility by exiting the market when the trend changes, instead of staying invested and incurring high losses that even the most conservative conventional equity portfolios suffer from.
Instead of being guided by the conventional investment strategies that have been a letdown to investors, the timed index investor is guided by signals provided by a proven market timing system. Alternately, for those who cannot or do not want to direct their own investment accounts, preferring the least amount of hands-on work, an investor can simply let a market timing service or financial advisor manage their portfolio.
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