30 Year Performance Summary
alphaplus is a mature computer program whose complex algorithms correctly advise to buy specific ETFs in the early stage of a rally and to sell at the end of each rally. It offers daily information about which ETFs to “buy” and when to “sell” each ETF. It tracks the daily gain/loss status of its “calls” on the ETF Sector Fund Investing “daily summary” and will be in your email at the end of each market day. An even more important feature is, it tells you when to be “IN” the market and when to be “OUT” of the market. The “IN”, “OUT” signal prevents significant losses and eases major anxiety during stressful times.
* The s&p and nasd yr.end data are the percent change in price from the first day to the last of each year, based on the alphaplus system calls. The Select 12 ETF and INDEXfd data are the percentages gain or loss for each year. From the price paid when purchased to the price at the end of year (some “buys” were made at lower or higher prices in a previous years that may have continued through multiple years). This chart provides actual percentage ytd gain or loss data to enable relative comparisons.
** On Dec. 19, 2018 the system made an “OUT” call based on greater negative continuous volatility than seen in the previous 35 years. By late Apr. 2019, while still “OUT”, a change to a number of algorithms were made that produced a “IN” signal that went back to Jan. 10, 2019. Being 4 months late and after the fact and fearful of a whipsaw event, those changes were not put into effect. We now concede that choice as an error and the % gains in columns G thru K for 2019 although shown, were not achieved . The numbers for 2019 can only be viewed now as added system robustness for future major market swings.
The nature of the alphaplus system requires continuity of its formulas/algorithms through the complete range of its history. Consequently, the numbers shown are always the result of the latest configuration of alphaplus . The system improvement of Apr. of 2019 resulted in only a few very minor changes to previous years.
General Information
Buying “long” only, during “IN” periods, produces a good but smaller percentage portfolio increase than when also shorting the market when the System is “OUT”. Table 3 displays the results when investing 50% S&P and 50% NASDAQ funds when “IN” and it shows the increased percentages when also investing short when “OUT”. If choosing to short, after the initial “OUT” all longs are sold at the open on the next trading day, short positions should be bought one day after all longs are sold (see short & Protection tab).
The 30 yr. performance chart provides a relative comparison between ETF Sector Fund Investing methods and the S&P and NASD. However, we note: the S&P and NASD year-end data are the percent change in price from the first day to the last of each year. ETF buys may have been made at lower or higher prices in a previous year(s), that have been in a continuous buy through the current year. The summary shows the actual ETF percentage ytd gain or loss data specific to each of the ETF price on its buy date.
Each time alphaplus goes from “OUT” to “IN” is an opportunity to rebalance and determine a new buy unit $$ amount.
The advantage of using this strategy within a non-taxable account (Roth IRA, 401k, or similar) is the elimination of yearly income tax issues.
What Clients Are Saying About The alphaplus System
John T.
"Elegant in its simplicity, rich in its rewards, the alphaplus system achieves the goal of leaving you in the market in an uptrend, and generally not shaking you out when it whipsaws, and finally getting you out when there are serious downdrafts. alphaplus allows you to do what successful traders always state: that you make the most money by sitting on your hands. It also prevents the allure of attempting to outsmart the professionals by day- or swing-trading. All-in-all an ingenous “System,” based on numbers and not emotions or hunches."
Gabrielle B.
"When I switched companies and left my job at CBS, I didn't know what to do with my 401k. Then I was introduced to the alphaplus system and I rolled my 401k into an account using the alphaplus strategy. I have been earning a great return for the past 1 1/2 years. I also started accounts for both of my sons, which have increased very nicely in value over the past year. I'm so thrilled to have found alphaplus and appreciate all of ETF Sector Fund Investing guidance on how to invest for a better return on my 401k and savings for my children."
David L.
"Time and again the alphaplus method has proven successful, invaluable, and well-considered. The returns consistently outperform the market and most index funds. It is easy to follow and the daily summaries keep me up-to-date. The most important and impressive thing I can say is that several weeks before the crash in 2008 the system recommended that we sell our holdings and get out of the market. The S&P500 lost ~42 % after that call. That advice proved prescient and unparalleled, saving our family from devastating losses. I am forever a believer!"
