Results of the strategy for the past 2 years

During the past two years, the strategy has provided 5 signals (marked by the arrows on the chart below).

• A CASH signal in November 2007 (well before the market crash)
• A SELL signal in December 2007
• A CASH signal in July 2009
  
• A BUY signal in July 2009
• A CASH signal in October 2009

Overall the profit was 38%. This compares with a significant loss of 28% when using a buy & hold approach for the same time period. At the worst, the drop from the high in July 2007 to March 2009 was over 50%. The additional benefit of the strategy was that no sleep was lost due to the market crash.

Chart S&P 500 Index (2 years):

Chart courtesy of StockCharts, www.StockCharts.com