MARKET CONDITION
CURRENT ALLOCATION
market condition
current allocation
EXITS (INDICATORS) USED IN THIS MODEL:
INDICATOR
TIME-FRAME
STATUS
LAST CHANGE
SHORT
NONE
Jan 1, 2001
LONG
NONE
Jan 1, 2001
SECTOR
ALLOCATION
ETF EXAMPLE
MUT. FND. EX.
The Risk NumberĀ® from Nitrogen is an objective, quantitative measurement of an investorās true risk tolerance and the risk in a portfolio. The patented technology calculates a ārisk scoreā on a scale from 1-99, utilizing a scientific framework that won the Nobel Prize for Economics.
MAXIMUM EQUITY ALLOCATION
MINIMUM EQUITY ALLOCATION
Reallocation quarterly.
Anytime the STARPATH indicator signals a change in position from Positive to Negative, or vice versa.
When STARPATHĀ is positive ā 100% equally allocated to the top 5 type 1 and 2's from the Indicators & Rankings tab.
When STARPATH is negative ā 0% to equities.
Emphasis is on the longer-term Bull and Bear cycles in the U.S. equity market. When STARPATH switches to negative, the model allocates 100% to a Bond Index Fund. If the DELTA-V Bond Indicator is negative, the model allocates to cash.
Model Description
The original Buy/Replace Model is continuously invested in the Top 5 Type 1 asset class selections as shown on page 1 of this document. The model's selections are revisited quarterly for potential additions or deletions. With no risk management, the Buy/Replace model is an alternate to buy-and-hold of popular market indices.
Buy/Replace+STARPATH adds a market exposure component with the STARPATH indicator. STARPATH will change toOut of Market' status when Cash rises in comparison to a group of 16 styleboxes and sectors, using our exclusive adaptation of the MAD method of comparison. STARPATH returns to 'In the Market' status when Cash falls. STARPATH 'Out of Market' periods can last anywhere from a few days to a few months and typically add from two to six extra trading days a year to the standard Buy/Replace Model.
Construction
Equal allocations to the top 5 Type 1 and 2 asset classes from the Indicators &Ā Rankings tab.
Portfolios are rebalanced Quarterly and at indicator changes.When the STARPATH indicator is 'Out of Market", the Buy/Replace+STARPATH Model invests in a bond index fund, or Cash if bonds are in Bear status.
The 16 market segments used by the STARPATH indicator are: nine styleboxes, the Dow 30, the NASDAQ 100, the Russell 3000, Consumer Cyclicals, Financials, Industrials and Technology. The ranking of Cash within this group is specific to STARPATH.
*MAD = Moving Average Distance
The performance returns illustrated do not represent actual client accounts and are net of the highest management fee and trading costs which is 0.80%. Returns reflect since inception, one, five and tenāyear periods, and are reflected in U.S. dollars and assume that dividends are reinvested.
The strategies employed may involve technical trading techniques such as trend analysis, relative strength, moving averages, various momentum and related strategies. Technical trading models utilize mathematical algorithms to attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, new data is accurately incorporated, or the software can accurately predict future market, industry and sector performance.
