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Dear Bill,
I was trying to figure out why all of this copious posting on something like this and now I see why.
Does a long winded commercial sound too unkind.Please....give us credit.The least you could do is just send it to people who specifically requested it only.
Regards,
John
------------------ Reply Separator --------------------
Originally From: Bill Bancroft <bancroft@xxxxxxxxxxxxxxx>
Subject: GEN: My System Part V
Date: 05/05/98 12:16pm
Now you know the gist of it all. When you put all these systems
together, you have a very dynamic asset allocation "system".
Let's review: Zone 1 & 3 -- trade the Fidelity Sector funds with the
switching model
Zone 2 -- trade Fidelity bond funds (buy and hold
until the zone changes -- no trading)
Zone 4 -- trade gold funds if the gold system has a
signal, else, enter a money market
Since 1986, this system has returned roughly 30% a year with a maximum
drawdown of 11% (without margin). I realize the market since 1986 has
been very favorable to equities. I do not foresee the next 12 years
being as good as the past 12. If the market heads south, we will change
zones (into either 2 or 4) and not earn as much money. But I would
rather only earn 12% a year in bonds or gold, than lose my shirt in
equities (it is all relative).
New areas of research: since the switching model works so well on mutual
funds, it should work on homemade stock groups. My current research is
focused on picking the hot stocks out of the hot groups. This system
will be much more volatile (read: riskier) than the mutual fund model.
My boss and I will offer the signals to the entire system later this
year. We will have ONE introductory period of 6 months for a reduced
rate ($100?). You will be able to access the signals through a web site
with a password we supply you (after your check clears-ha!). If, at the
end of 6 months, you like the model and would like to subscribe for a
longer time period, the rate will increase (to what? I don't know--
what's fair?). If you are disappointed, you simply don't renew.
Feel free to question or comment (good or bad) any of my systems I have
presented here. I hope it triggers some new ideas in all of you. I,
too, am always open to new ideas.
Hope it helped--
Bill Bancroft
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