Research Excerpts

Correction Protection Model:
Q3 2015 Performance Update

Posted on: Tuesday, October 20th, 2015

The table and chart below below display updated performance data through September 2015 for our “Correction Protection Model” (CPM).

We back-tested the model from 2007 forward during a period that includes uptrends, downtrends, and sideways trends.  It has been running in real-time since September 2013.

Purpose & Key Features:

  • Defensive, quantitatively-driven model that
  • protects investors against market declines
  • without sacrificing long term performance under a variety of market conditions
  • while reducing volatility of returns.

Correction Protection Model (CPM) statistical performance versus the S&P 500 through Q3 2015.

Table 1

Statistical Comparison: CPM vs. S&P 500

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Correction Protection Model (CPM) growth of $100 vs. S&P 500 since 2007.

Growth of $100: CPM vs. S&P 500

Growth of $100: CPM vs. S&P 500

click on chart to enlarge

About CPM:

  • The model is a defensive hedge against market corrections and bear markets that can decimate investor portfolios.
  • The model utilizes 4 quantitative inputs.
  • The model uses the S&P 500 as a proxy for the market.
  • The model is binary: either in the market or out of it.  There are no short positions, leveraged longs, or hedging via derivatives.
  • The model was designed to: 1) be in the market as much as possible, 3) exit on meaningful declines, and 4) quickly re-enter as soon as a positive trend has been reestablished.
  • Since 2007, the model has been in the market 74% of the time
  • Since 2007, the model has averaged 4.1 signals per year or approximately 1 per quarter.

Click Here for more charts and information pertaining to the Correction Protection Model.

Interested investors can learn more about our research services by completing an information request or by calling 1-888-960-0005.