Our point of difference
Exploratory simulation testing moves far beyond that of a simple back test on a single portfolio or even a Monte Carlo simulation. With exploratory simulations, the whole universe of factors that affect a portfolio throughout its life are taken into account to recreate the nearly infinite variations of outcomes, as they would have actually occurred to a real investor. Each of the recreated portfolios take into account market conditions, costs, slippage, position sizing and all other money and risk management principles included in SPA3.
Portfolio simulation is some of the most advanced financial markets research available. Anything else is sub-par when it comes to trusting how you will invest your money.
A BIG picture view
The research period conducted was from the 1st January, 2000 to the 31st December, 2012.
The single red equity curve is a marked-to-market equity curve of the All Ordinaries Index. The All Ordinaries Index is an Australian, industry recognised benchmark that can be used to measure the overall performance in the stock market.
The larger and wider ‘Blue’ equity curves represent 1000 individual and unique SPA3 portfolios that were traded by following the exact same SPA3 signals, rules and processes that we teach our customers.
1000 individual portfolios
All 1000 individual portfolios out-performed the All Ordinaries and made money over the research period. The results include brokerage but exclude tax. The results would be even better if interest and dividends were added.
The testing was conducted over some of the roughest and toughest markets in the last 50 years. Periods such as the tech crash of 2000, September 11, 2001, the 2002 – 2003 bear market, the rising markets of 2003- 2007 and the Global Financial Crisis of 2007 -2009.
Just by following the very same rules and processes that we teach our customers, you would now have an understanding of how SPA3 would have performed or out-performed the market during the research period!
The 1000 unique SPA3 portfolio equity curves demonstrate that by following the same processes that we teach our customers, a steadily rising equity curve can be achieved.
What about the Global
One of the biggest market events of the last 50 years was the Global Financial Crisis and at the time, no one saw it coming. When it did bottom out and come to an end, the All Ordinaries index would end up falling 55.62% from it’s highs. Quite simply, this outcome means that almost ever investor trading through this period would have lost half their investment portfolio.
Look at how the 1000 unique SPA3 portfolios performed during this sustained and devastating falling market. You see that all 1000 unique portfolios basically tracked sideways during this period. That’s right… in a market where the majority of investors where losing their shirts, SPA3 went into protect mode and sent portfolios largely to cash. This can only be attributed to one thing and one thing alone – SPA3 Market Timing.
Research you can trust
When we talk with investors, they tell us that the one thing they fear most is market volatility and knowing the right time to buy and sell. They are afraid of missing out on the opportunity of a life time but they are more fearful of being caught unprepared.
And this makes sense. Millions of investors suffered heavy losses in the past because they didn’t know when to sell. They have then missed out on unbelievable opportunities because they were fearful to buy again.
Knowing when to buy and sell needs to be more than guesswork and gut feel. If it’s not, then I’m sure you would agree that it is more like gambling!
If you want to be a successful investor, one that’s around for the long term, you need to know when to be in the market and when to be out. Using a tool like SPA3 could be the very difference between you retiring on time and not!
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