etfmsolutions: T 9..An Aside...10.30.12

Tuesday, October 30, 2012

T 9..An Aside...10.30.12

Just for fun here's a rotation model using 9 ETFs and it rotates into the top 7 on each Monday. The model is based on weekly bars and what's attractive in this version is the total drawdown numbers...almost too good to be true...max continuous drawdown = 3.9% !!!.

T9 only returns 25% over the past 4 years, basically equal to SPY but it been a whole different investment experience than holding the volatile SPY.
These models are vest suited for IRAs and other capital appreciation accounts where risk management is a primary concern...still...the returns are about 10X better than the average CD.

To save you some time figuring it out, I've culled XLE and IWM from the T3 mix to come up with the T9 components.
Although both XLE and IWM have had extended runs in the top 3 slots at T3, that comes with a price...volatility... that can turn into a double edge sword when the markets get bearish or when news drives XLE wildly up or down. The T9 portfolio just calms things down a bit.

Commentary and Updates

Mosaic Solutions commentary is typically published daily as time permits and market action warrants.
Posts feature Mosaic model updates including delta neutral stops, VIXEN directional trades and PONZO forecasts.

NOTE: Posted risk exposure indicators, signals and metrics apply to Mosaic models only. They are not directly correlated with price movement in the major market indices and can not be used to forecast directional changes in those instruments.
Each Mosaic model is a unique blend of risk factors and must be treated accordingly.

TRENDX is a proprietary Mosaic market signal that blends volume, RSI, momentum and rate of change.

ETF Mosaic Solutions and the editors of Mosaic Solutions are neither an investment advisory service nor registered investment advisers or broker-dealers and do not purport to tell or suggest which securities or currencies readers should buy or sell for themselves.
This site and related software products are for research and educational purposes only, and nothing herein should be construed as an offer to buy or sell, or as a solicitation of an offer to buy or sell securities, or to provide individual investment advice.

Investing is risky and past performance, whether actual or tested, is no guarantee of future results.
Any quantitatively derived allocations referenced herein should only be starting points for conducting your own research.

You are responsible for your own trading decisions and resultant gains or losses. When in doubt, please seek professional guidance from a registered adviser who can respond to your personal needs and risk profile.