ETF Core Strategies
Aim: To trend-trade general equity ETFs so as to ride rallies and buck busts in the Australian share market.
Although we started in 2009, the modelling and technical indicators used to produce our signals incorporate the latest and best R&D in the US where professional market timing is well established and proven as a superior alternative to buy and hold in a volatile secular bear market as evident since the turn of the millenium. Market timing has also performed well during secular bull markets such as between 1982 and 2000.
We have back-tested each of our market timing strategies against the Australian All Ordinaries index since 1984 and their superiority over a buy and hold strategy in terms of higher capital gains and significantly reduced risk (as measured by volatility) speaks for itself – see Our Performance under the website's menu.
Of course past performance is not necessarily indicative of future performance. But it’s reassuring that our strategies withstood this test. In July 2012 MarketTiming upgraded its Conservative Strategy to better handle a ranging market as experienced post October 2009. The new strategy when back-tested performed better than the original one still shown in the performance results prior to mid-2012.
MarketTiming’s return reflects long trades placed at the All Ordinaries closing index value the day following the issuance of a signal. It excludes dividend earnings on shares, interest earnings on cash holdings and income and capital gains taxes, but it includes share brokerage fees of 0.12% per transaction (similar to the brokerage fees charged by online brokers on buy or sell trades in excess of $25,000).