Investment Strategy

Advance and Protect

Common Sense: Investing only works if you get to keep the profits. Investing 101 tells us to, “Buy low and sell high,” NOT buy and hold forever. Too often we hear, “Just hang in there, it’ll come back.” That’s great, IF one can wait long enough for the assets to recover. The markets and economy go through constant up AND down cycles. If one needs their capital and the markets happen to be in a down cycle, it could be a painful time to withdraw assets. More importantly, it would be difficult to sit by and watch all of you hard-earned gains evaporate just because the market is falling. >>DOWNLOAD Closing Bell

The Difference: Our process does not rely on favorable conditions in any particular market, sector or asset class.

Advance and Protect Chart

Our Advance and Protect Strategy is a capital preservation model with an offensive strategy. Its primary directive is to control risk. The objective of the process is to capture growth when the market is rising and protect the principal when the market is falling. This strict buy and sell discipline is the foundation of the Advance and Protect Strategy. We use quantitative and qualitative analysis to work toward this goal. Quantitative information includes such things as price, volume and momentum – which help to reveal entry and exit points (as noted in the chart above). Qualitative inputs include a deep understanding of the fundamentals of the economy, markets and investments in which we invest. Our process monitors each portfolio component on a daily basis and adjusts your investment mix as the business cycle evolves.

As this example demonstrates, consistency - rather than counting on occasional large returns - may be the best approach: >>DOWNLOAD Cost of Volatility

Technically Speaking
The Advance and Protect modeling process weighs a host of individual market forces to generate buy, sell or hold signals. Our process employs proprietary price-projection/retracement models, as well as related market pattern analysis.

The automated daily and weekly voting mechanisms reward or penalize individual indicators and patterns through probability analysis. This analysis is then employed to adjust the weighting assigned to each portfolio position in accordance with their uni-variate and multi-variate predictive accuracy; experienced over both the immediate and more distant history.

Some components of the models include: price patterns, moving averages, rate-of-change considerations of moving averages, trends and relative positions to the moving average. These components assist in signal generation based upon proprietary indicators, first and second derivatives, and other formulas used to analyze the characteristics of the individual symbol. Our total rule base contains more than 600 variables.

Upon completion of the initial analysis, a buy, sell or hold decision is generated. Based upon our pre-determined use of capital, our Advance and Protect allocation models evaluate portfolio position size and risk adjustments on a dynamic basis. The objective of our process is to produce consistent risk-adjusted returns through the effective use of cash and diversification of assets.

Because the Advance and Protect process is driven by a mathematic algorithm, the output of which is delivered via the employment of computer-generated systems, we are able to protect a complete back-test track record with a highly accurate statistical analysis of the hypothetical portfolio performance.

The Advance and Protect process, through the employment of its algorithmic functions, dynamically analyzes each specific component of a portfolio and adjusts exposure to market risk by the use of cash vs. equity exposure. This dynamic process attempts to reduce overall risk exposure of a portfolio.

 
There is no guarantee this strategy will meet its objectives.
This strategy does not guarantee a profit or guarantee protection against loss.