Consistent, safe investment profits with a simple strategy

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How well do you know what precise qualities you value most when selecting an investment method? How big of a priority is consistency: the percentage of time that a strategy produces an increase in value? How big of a concern for you is the total net profit per year (on average)?

For example, if an investment method consistently produced profits over 90% of the time (almost every single day year after year after year), then how much would those results interest you? What if that method consistently produced annual profits of well over 10% (or even over 20% year after year)? Would that be enough potential value for you to invest a few minutes of time to explore further now?

 

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(To more easily read the caption and see the image in full-screen size, click on the image above.)

I have spent more than 12 years developing expertise in successfully forecasting major changes in price trends (and creating lucrative investment strategies based on those forecasting methods). In those 12 years, I have successfully forecast and explained (in advance) all of the most prominent economic changes in the last decade. However, such forecasting involves a lot of analysis (hours) and also a fair amount of waiting (weeks, months, & years). It can be hard to wait several months (or even years) for an insight to finally produce 5 or 6 digit returns.

For instance, it was 2004 when I started publishing explanations of why global fuel prices would continue to rise and exactly how that would destabilize the economy of Europe and then ripple worldwide. But it was years later (2007 and 2008) before those developments really accelerated, eventually erupting in to mainstream news headlines. In 2004, though, I did not have a financial situation that allowed for me to wait for a few years before profiting from my insights.

So I was thrilled when I recently noticed a simple way to profit from a simple mathematical fact that I had been aware of for several years. I just had not researched exactly how to capitalize on that very simple observation. I had been focusing instead on two other issues: investing strategies that could produce large gains immediately and investing strategies that would eventually produce very large gains (but only under very specific conditions which had to be carefully monitored- which is in sharp contrast to this newer method.)

Incidentally, I have no incentive to tell you the specific details of the insight, but I can easily show you the results it produces. Plus, if you like what I am about to show you, then you can let me know of your interest and then we will both be able to benefit from the insight.


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The above 4 charts are showing actual weekly price changes from more than 3 years of “back-testing.” Note that this is not a “market-timing” system. Instead, the above charts are showing changes that represent a nearly inevitable mathematical advantage from a certain method of pairing two related investments. The 4 charts above actually show the price change over time of four similar pairs (so the 4 charts each show the cumulative price change of 2 positions per chart, totaling 8 positions).

There is no complexity in terms of figuring out when to buy or sell. The simple insight that I had now allows for anyone to capitalize on a principle that is almost as reliable as collecting interest on a bank account- or maybe even more reliable than that (in the long run)!

In the chart at the very top (with different shades of blue and showing total profits of about 60%), I combined all four of the above methods for a very high degree of stability (safety).  In the next chart (which shows gains of about 100% in 3 years), I show the results available by combining 3 methods.

Whether you can see it or not, the profits of both of those charts of “combined” strategies move very closely. The simple reason for that is that most of the profits come from this single method:

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However, there is a drawback to using that method alone. In the 3 years shown, there were weekly declines 3 times that were losses of 10% or more. While that kind of decline should not be troubling to investors who speculate on real estate, stock markets or most mutual funds (which in the long run are all much more risky than what is shown here), any decline is less than what I consider ideal.

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What is ideal to me? 100% consistency. However, I have another ideal, which is profitability. The higher we raise our standards of consistency (like from 70% to 80% or from 80% to 90%), the lower our total profitability tends to be.

So, in this presentation, I am featuring two alternatives. One has more profitability and the other has more consistency.

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The one above is a very steady increase (with barely any dips in the entire 3 year period). However, the one below offers nearly double the profits with very little decrease in stability. Further, it is easy enough to blend those two alternatives to produce profits somewhere between the two.

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If you would like to receive the benefit of more consistent profitability for your investments (like what you just saw above), contact me to let me know. One simple way to reach me is by posting a comment on this blog in the box below. If you have my email address or other contact details, select the method that is most convenient for you and, in your communication, indicate exactly how you would like for me to respond to you (such as by phone or by Skype).

 

 

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