Thanks for your comment. Actually, I'm planning to write an article specifically for US-based investors, measuring everything in USD and comparing to S&P 500.
I might have missed it. That look really impressive. I thought the strategy just edge the SPX by a small margin, but damn that's outstanding. Thank you for sharing.
But how do we determine when to stay out of the market? Are we looking at VIX or.. Mind sharing?
You're welcome! Yes, the difference between MSCI World and the S&P 500 is not a big as people tend to think. Roughly 70% of the world index consists of the S&P 500.
I wrote about the drawdown part of the strategy in the same article I linked before, but to quickly answer your question:
It does not depend on VIX or anything else except monthly closing prices, and it only leaves the market when 3 specific conditions are all met (the details of this part is proprietary). This hasn't happened since 2009.
Your strategy really generate Alpha against the MSCI World Index but can you kindly show the results of your strategy against the S&P 500 Index?
I understand your selection for the MSCI World as the benchmark, just curious how it performs against SPX.
Thanks for your comment. Actually, I'm planning to write an article specifically for US-based investors, measuring everything in USD and comparing to S&P 500.
But you can already see S&P 500 in the charts for a comparison in this article: https://www.marketfighter.com/p/my-investment-approach-that-outperformed
I might have missed it. That look really impressive. I thought the strategy just edge the SPX by a small margin, but damn that's outstanding. Thank you for sharing.
But how do we determine when to stay out of the market? Are we looking at VIX or.. Mind sharing?
You're welcome! Yes, the difference between MSCI World and the S&P 500 is not a big as people tend to think. Roughly 70% of the world index consists of the S&P 500.
I wrote about the drawdown part of the strategy in the same article I linked before, but to quickly answer your question:
It does not depend on VIX or anything else except monthly closing prices, and it only leaves the market when 3 specific conditions are all met (the details of this part is proprietary). This hasn't happened since 2009.
Thank you so much for taking the time to reply to all of my comments. May you be blessed with health, wealth and happiness in abundance.
The full name of Dollar Cost Averaging
= Averaging on the Discount on Dollar Worth Opportunity Cost
= Averaging on the Discount on Opportunity Cost
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When Opportunity Cost < 1, averaging down.
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When Opportunity Cost > 1, stop averaging down.
Most investors think the edge is finding the right stock.
The harder edge is surviving your own behavior long enough for compounding to work.
A bad system can survive a bull market. A bad process usually gets exposed in the first real drawdown.