Our team provides high-quality investment services for its clients. We are committed to quality, integrity and service. Our team focuses on combining expertise from the financial industry to our customers. We use proprietary methods and highly sophisticated algorithms in our trading applications to the more popular and actively traded Exchange Traded Funds (ETFs). Our service generates and publishes "market allotments" carried as percentage distributions of the highest dollar-volume trading ETFs.
Smart money management requires proper allocations into these ETFs with periodic adjustments. We invest at ideal times in one or two ETFs (rarely three ETFs) at specific times in easy to understand percentage distributions with an average of two trades per month. Our clients invest in the ETFs that show the highest probability of success during specific market conditions that are identified in our algorithms. We virtually eliminate and weather any extreme market fluctuation that will occur even in bull markets.
Our combination of knowledge, skills and experience, creates an unmatched professional service for investors. As shown in our track record, we have designed one of the most successful trading systems in the world today. In addition, we emphasize education through financial enrichment articles for our clients.
As explained in our long-term view of the stock market (Why BMF?), we have strong reasons to believe that the stock market is in a secular bull market. In brief, the major indexes began a bull cycle in March 2009, reached long-term resistance between 2013 to 2016, and have now broke out above this significant boundary. The charts of the broad market indexes we provided in our write-up explain and show sufficient evidence to support our hypothesis. For this reason, we will invest (or trade) the uptrending ETFs (exchange traded funds) in a secular bull market. Our trades will mostly involve going Long. However, during times of short-term pullbacks or when the market is having difficulty in going higher (because there will be many times this will occur in a bull market), we will either increase our allotments in cash or use inverse funds. We will not short the market simply because trying to capture small gains from downtrends is not worth the risk of going against the overall long term uptrend of the market.
The system contains back-tested data starting in January 2009. We went live January 1, 2017. We publish market allocations with a strategy that generates about 25 signals per year.
Exchange traded funds (ETFs) are a simple and inexpensive way to gain a diversified stake in hundreds of companies that make up the index thereby minimizing specific risk exposure to any one company. Because ETFs have very liquid markets, they can be bought or sold instantly through any stockbroker either online or by phone. ETFs also have very low annual management expense ratios. For these reasons they are the preferred class of investment vehicle for our business. Our system tracks the most popular and actively traded Exchange Traded Funds (ETFs). A list of these can be found at: http://etfdb.com/compare/volume/
As previously stated, we use only the popular and actively traded ETFs. We provide our clients (via our website and Email/SMS) with various allotments for ETFs based on our proprietary algorithms. Normally there will only be one or two ETFs per trade with a maximum of three ETFs, but this is rare. The allotments are simply issued in easy to understand percentages per ETF (e.g., 60% SPY, 40% QQQ). For example, if you are investing $100,000, then you would go long with $60,000 for SPY, and $40,000 for QQQ. We will post the new trade alert on our Members page, which is also shown in an easy to understand pie chart, and send the alert to all members via Email and/or SMS. When a new trade alert is issued, it is understood to sell your previous positions and go long (buy) the new ETF(s) with their percentage distributions.
Another example: If the current allotments are 60% SPY, 40% QQQ, and on 02/23/2017 we issue a new allotment of 50% AGG, 50% TLT, then members are to sell their previous positions of SPY and QQQ, and buy the new ETFs at 50% AGG and 50% TLT. However, if the new allotment is 60% SPY and 40% AGG, then you only need to sell the QQQ position and replace it with 40% AGG. On the members page, we have made calculating the amount to invest in each fund very simple. All you need to do is put in the initial amount you are investing, and it will calculate the distribution allotments for the various ETFs.
Our signals are derived by using a purely quantitative technical approach that does not predict or forecast the market. Our approach is based on reacting to price action as calculated in our algorithms. The method we use is a combination of 'trend following' and 'momentum' to identify trade able impulses. These tradeable impulses respond to the new market direction, which is called "reactive technical analysis". We do no forecast the market, the system is designed to respond to changes in the market as soon as possible after they occur. Another way of explaining this is by saying our system identifies trend/momentum reversals and then acts accordingly.
Technically, the system will work on any traded stock. However, we choose the popular and high volume ETFs since they can be easily traded and carry less risk. Once weakness enters into our allotment distribution, the system changes ETFs and/or adjusts allotment distributions. Its a well-designed system that combines momentum and trend, which amounts to larger gains outweighing the smaller losses, with minimal drawdowns.