2 investing systems producing annual gains of 220% and 110%.

A few weeks ago, I presented a chart that showed 4 very profitable trading systems together. Today, let’s simplify a bit and just look at 2 of them (including the latest 2 weeks of performance data).

Further down the page, I show the same charts much larger. You can read the captions in the larger versions. For now, just notice that the shapes of the up-sloping trends are quite different.

So, these two charts show the exact same time frame (6 months). You can see that the shapes of the two charts are totally distinct- no correlation. That is because the systems have totally different strategies (and the trades cover totally different timeframes in totally different markets/ investiment instruments).

While it would be fine to just trade either of thee two alone, my comments a few weeks ago focused on combining multiple systems to reduce risk by increasing the smoothness/flatness of the “growth curve.”
So, I won’t repeat much about why I like that kind of “targeted diversification.” Basically, I am open to using both systems together to produce gains that are far greater than those of the lesser of the two systems, but much smoother/steadier than the more lucrative system alone.

The more lucrative one trades exactly one stock index, the US DJIA (Dow Jones Industrial Average of 30 companies). However, it is not a long-term “buy and hold/ buy and hope” system like most mutual fund investors are familiar with. It buys certain dips and sells, on average, 18 days later at a large profit. Honestly, I would prefer a system that covered a larger variety of markets. However, the performace of this system is now up to over 200% gains per year. I certainly do like that.

The “lesser one” only trades instruments that are”volality ETFs” (like VXX, XIV, SVXY). That is already “unfamiliar territory” for most people. These positions are not purchases of stocks or bonds or commodities or currencies, which is actually something that I really LIKE this system (because it is focusing on a type of investment that is totally off of the radar of mainstream “herd” investors).

 

So, why am I sharing this info? I assume that most investors are getting results that are much less lucrative and much less safe than these systems. I know that systems like this exist and I know how to find them and use them. I am willing to combine my motivation and expertise with the resources (assets) of other people to mutually benefit all of us.

If you are interested in exploring this opportunity, let me know. As I noted in prior weeks, whatever precautions someone is willing to invest in (like by involving CPAs or lawyers), I am fine with that.

 

 

 

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