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- Automated Stock Market Trading System |
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Cost Average Fishing Strategy |
I've been playing the stock market game for over 20 years now. I've purchased and invented countless "systems" that work great on paper but then fail when I start using them. Sound familiar? That's because it's very easy to come up with a system that "fits" the data during the backtesting period but nearly impossible to get one to work for real going forward, outside of the sample period. Also, most systems are valid for only a single stock or a few selected ones. That makes it even easier to fit the data and less likely it will work for real.
The Cost Average Fishing (CAF) strategy is different because it is a general purpose strategy that is played over 900 stocks, the large, liquid S&P 500 component stocks and the 400 mid-caps. It would be impossible to fit the data on so many stocks. The strategy is two-fold. Part one looks for rising stocks in a dip. Part two looks for highly oversold stocks. It first identifies stocks that meet the criteria, then begins "fishing" for a better price. A proprietary statistical algorithm that considers historical and recent price patterns determines the buy and sell prices. It is designed to maximize the probability of achieving a winning trade while minimizing the risk of drawdown.
Several positions can be purchased if the stock continues to dip. The "cost averaging" lowers the average price paid and greatly increases the odds of making a profit. This strategy doesn't hit any home runs but makes steady progress through a very high percentage of small, short-term winning trades. Best of all and despite it being a buy-only strategy, it works in any kind of market - rising, falling, or sideways. This adds up to incredible average annualized returns with around 80% winning trades and very little drawdown. It is the single best, safest strategy I have ever seen.
Click CAF Performance to see the backtested strategy performance for four years ending February 26, 2007. Keep in mind that the period from March, 2000 to March, 2003 was the worst three consecutive years the Nasdaq market has EVER recorded - even worse than the Dow did over the great depression. Yet the CAF strategy does incredible. From March, 2003 to January, 2004 the stock market was in a big bull market. The strategy does great during that period as well. And look at 2004. Did any of you make money that year? I didn't think so. But the Cost Avg Fishing strategy did.
Check out the Real Trades too. This is the real deal, not a backtest. Money going into my bank account every day. When you subscribe, you will have access to Open Trades and Today's Picks. Then you too can sit back and let the MoneyMachineTM start filling up your bank account so you can go out and enjoy life!
