Published by Mebane Faber in the Journal of Wealth Management back in 2007, this strategy generates equity-like returns with bond-like drawdowns.
If you’re looking for investment news, stock tips, market predictions, and how to double your money overnight, then this website is NOT for you.
However, if you are looking for:
Then, Yes! You’ve come to the right place
We’re not from Wall St. and we’re not investment gurus.
We’re actually software engineers from Silicon Valley, and we decided to take charge of our own investment accounts after the Tech Bubble crash in 2002, when we realized that most professional money managers do not add any significant value. In fact, 90% of money managers underperform the index funds in the long run, despite raking in billions of dollars in fees each year.
Now there’s nothing magical about stock indices. It’s simply a group of stocks selected using systematic rule-based criteria. Some indices, like the S&P 500, have a bit of discretion involved when selecting its components, while others, like the Russell 1000, are entirely based on rules (100% mechanical).
The only problem we have with index fund buy & hold strategy is that it has too much risk (40 to 60% loss during bear markets) relative to its reward (10% compounded return). So even if it looks good on paper, it’s very psychologically difficult to follow.
So we looked for rule-based investment and trading systems that have better risk-reward characteristics
We searched for them in books, research papers, magazines, home-study courses, newsletters, seminars, and pretty much everything else we can get our hands on. We looked at strategies for stocks, bonds, commodities, real estate, currencies, and other asset classes. We investigated both long-term and short-term time frames.
And did we find anything useful? Yep! We found many strategies with quantifiable edges that are simple enough for you to implement on your own and have better risk-reward characteristics than buy and hold.
The only problem?
They are hard to find, they are expensive to test, and they are a hassle to maintain!
The truth of the matter is, there are tremendous amount of information out there about investing and trading, but most of them are junk. We spent many nights and weekends testing strategies that ultimately failed. Out of 10 we tried, only 1 or 2 remains to work. Many strategies are extremely subjective that we couldn’t agree amongst ourselves whether it’s a buy or a sell.
We hate to admit it, but we’ve spent thousands of dollars on historical data and on specialized software so we can test the strategies we've found. With the amount they charge, you would think that everything will be taken care of. But no, we still end up creating many spreadsheets to massage the data and work-around their limitations, and this made updating our research a nightmare.
On top of it all, we cannot readily share our research with you, unless you pay for the same data and software we use, which are not exactly cheap or easy to operate. We could have published our work in book form or PDF reports, but it cannot accommodate the level of detail we’ve envisioned.
It’s out to these frustrations that Extrategic Dashboard was born!
We REALLY wanted to do things right, so we decided to build our very own software platform. This gave us flexibility and enabled us to automate our research process, deliver our results in a more accessible format, and provide tools that make investing a lot easier for you. We do all of these so you can have access to a level of information that was once reserved only for serious market students and investment professionals.
And the best part?
What’s more, we’re just getting started! Pretty soon, you’ll have access to even more strategies, research, and tools that’s not available anywhere else!
So what are you waiting for?
Developed by Nelson Freeburg of Formula Research, this strategy has been around for nearly two decades and it’s available to the public. Think about how much agony you could have avoided had you followed this strategy!
To get acquainted with our platform and philosophy, we recommend that you start by reading the following articles in sequence:
We wrote them such that even beginning systematic investors can pick up the concepts easily. Try not to skip because they build on top of one another. If you’re already a pro, read them anyway because each article describes a powerful strategy that you can use, whether you’re a long-term investor or a short-term trader.
Each article describes a model, which is like a strategy template. Like any template, a model defines the basic structure, and you need to assign values to its parameters to make them concrete. Examples of parameters include the start and end dates, the stocks or portfolio to buy and sell, and the lookback period of indicators.
Once a set of parameters are assigned to a model, then it turns into a specific form we call programs. For each model, we typically derive many programs to illustrate how it performs on specific markets, under specific time periods, and using specific parameter sets. The Best Six Months Timing Model, for example, has several programs associated with it:
So if you want to understand the background and the rules of a strategy, you look at its model. But if you want to see the actual buy / sell signals, historical trades, and performance statistics, you look at its programs.
We’re currently in pre-launch mode, so we can only accept a limited number of members at this time. Once we reach our target quota, then further sign ups will be by invitation only, and we will re-open it to the general public only after we do the full launch. So if you’re ready to take charge of your financial future using well-defined strategies, then don’t wait another minute!
Get Started Today - It's FREE!
It's FREE!
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