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Turbo Model


Turbo Model Description


With its Turbo Model, TimingCube offers an innovative system to trading the stock market. By focusing on the volatility of the market, our Model can toggle between a slow, trend-following approach to investing and a faster mode that requires more active trading. By issuing simple Buy or Sell signals, subscribers are able to easily follow the Model's guidance and invest in their favorite broad market equity index. Because of its frequent trading signals during volatile periods, some might think our Turbo Model to be a demanding, high-maintenance friend. However, with 70% of the trades being winners, investors can miss a few trades here or there without substantially impacting their long-term return from the system. And that long-term performance offers a compelling ride; gliding over the market's speedbumps and accelerating into the straightaways to give your portfolio maximum speed while maintaining an enviable record of safety.

Take TimingCube's Turbo Model for a spin today, and turbocharge your portfolio!


Getting Started
Getting started with the TimingCube Turbo Model is extremely easy. Once you have decided how much money you want to invest with the system, all you need to know is what our current timing signal is (Buy or Sell).

The Turbo Model is run daily after the New York stock market closes. We update our Web site and Signal by Phone message by 9:00 pm ET that same day. If a new signal is triggered, we also automatically send an e-mail to all active subscribers that have elected to be notified of Turbo signal changes. That way, you don't have to check the site every day to ensure that you are not missing out on a new signal. In order to achieve the full benefit from any signal change, you should act on it as soon as possible.
For market commentary and investor education topics, subscribers should consult our "Weekly Update" posted on the Web site on Fridays. The latest and archived updates can be viewed on the "Weeklies" page after you log in. To establish your portfolio and start trading with our Turbo Model, simply follow the steps below.

Getting started with the TimingCube Turbo Model:
  1. Decide how to allocate your funds. You can also use our Turbo Model signals to trade specific U.S. indexes: for reference, we track the results obtained for the Nasdaq 100, Russell 2000 and S&P 500 when trading the corresponding ETFs (QQQ, IWM and SPY respectively) according to our signals. Because of the frequent trading that can occur at times with the Turbo Model, we recommend that subscribers with IRA or non-margined accounts make sure they have cash available in their account before placing orders to buy new positions in order to avoid settlement issues. How quickly cash is available after making trades can vary among brokers.
  2. Select your strategy between the more aggressive Long and Short, which shorts the market during Sell signals, and Long Only, which simply goes to cash when our signal is Sell.
  3. Log in to the TimingCube Web site and obtain our current Turbo Model signal from the Turbo Model "Signal" page.
  4. Establish and maintain your portfolio according to the following table (see the "Strategies" section below for all the details):
 
Implementing the Strategies with ETFs
 
Turbo Signal
Nasdaq 100
Russell 2000
S&P 500
Strategy 1
Long & Short
Buy
Buy QQQ
Buy IWM
Buy SPY
Sell
Short QQQ
or
Buy PSQ
Short IWM
or
Buy RWM
Short SPY
or
Buy SH
Strategy 2
Long Only
Buy
Buy QQQ
Buy IWM
Buy SPY
Sell
Cash
or
Money Market Fund
Note: when the Turbo Signal changes, any existing position should be liquidated before the new one is taken.

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Strategies
Our Turbo Model is designed to work best when trading the Nasdaq 100. However, good results can also be had by using other broad equity indexes such as the Russell 2000 or S&P 500. We report the returns obtained using the corresponding ETFs on our "Results" page. Regardless of which index you choose to follow, we provide two simple strategies that will help you achieve strong, consistent long-term results, namely the Long and Short and Long Only strategies.
  • Strategy 1: Long and Short
    This strategy approach allows us to profit whether the market is going up or down. We believe this strategy offers the best risk/reward ratio for most investors, and maximizes the benefits of our Turbo Model. You will remain invested, long or short, at all times.


    • When our Turbo Model issues a Buy signal, you liquidate your current short positions (if any), and buy shares of your selected investment, thus establishing a long position. For example, buying shares in the Nasdaq 100 index ETF, symbol QQQ.

    • When our Turbo Model issues a Sell signal, you liquidate your current long positions (if any) and "sell" the market by shorting shares of your selected investment or buying the corresponding inverse fund. For example, buying shares in the inverse Nasdaq 100 ETF, symbol PSQ.

    Note: Since selling short requires a margin account, qualified retirement accounts such as an IRA or a 401k plan must buy inverse ETFs, as these investment vehicles are authorized in retirement accounts. Most 401k plans would not have an inverse ETF or mutual fund choice, and might impose restrictions on trading as well. In such cases, we would recommend our Long Only strategy below as a better choice.
  • Strategy 2: Long Only
    This strategy invests only when a Buy signal is issued and remains in cash otherwise:

    • When our Turbo Model issues a Buy signal, you buy shares of your selected investment, thus establishing a long position. For example, buying shares in the Nasdaq 100 index ETF, symbol QQQ.

    • When our Turbo Model issues a Sell signal, you liquidate your long positions and keep the proceeds in cash or in a money market fund.

    Note: The Long Only strategy will result in only half the trades of the full Long and Short approach, and may also be a good choice for situations where you do not have access to inverse ETFs.
You can check the performance and returns for both strategies on the "Results" page. If you are a subscriber and log in to the site, all returns on the "Results" page will be current as of the last trading day. If you are not a subscriber, all results will be delayed by twenty trading days.

We strongly recommend ETFs for use with our Turbo Model and expect subscribers will see substantially diminished results if using mutual funds to trade the signals.

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Investor Profile
Our Turbo Model serves investors who are willing to more actively trade their account in order to achieve better performance. Trade signals are driven in part by market volatility. They can come as often as twice a week during periods of extreme market volatility. During calm periods in the market, there may be weeks or months between signals, the average being 4 signals per month. Because of the active trading nature of the Turbo Model, investors using IRA accounts should consider using half or less of their full account value during active trading periods to avoid issues with trade settlement and cash availability. To compensate for this, IRA accounts should consider using leveraged ETFs - e.g. using a 2x ETF in half of the account.

There are no prerequisites or particular investment experience requirements, and no complicated methodology to learn. Because of this combination of simplicity and performance, we believe that TimingCube belongs in any investor's portfolio. You could start with as little as a few thousand of dollars or millions. The money can be in regular brokerage accounts or any qualified retirement accounts that allow trading of ETFs.

If you are interested in our investment approach but do not have the desire to do your own trading, the staff of our sister company, MARKETTREND Advisors, will be happy to manage a TimingCube-based portfolio on your behalf.

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Turbo Model
Our proprietary Turbo Model derives its signals from the behavior of the QQQ . QQQ is the ETF based on the Nasdaq 100 , an index driven primarily by the largest technology companies in the United States. Taking into account the volatility of the index, our Turbo Model can be in a slower, trend-following state where signals and trades are few; or switch to more frequent trading where signals can occur as often as twice a week, with an overall average of 4 signals per month. Launched in October 2011, The Turbo Model is 100% mechanical and has been backtested since the inception of the QQQ ETF, that is March 1999.

The Turbo Model will generate a Buy or Sell signal as conditions dictate with subscribers notified that evening by e-mail of a signal change. Once a signal has been issued, it remains in effect until a change in signal comes. Unlike our Classic Model, our Turbo Model never issues a Cash signal, nor does it have any stop loss point. Over the 12 years of backtested performance, the Turbo Model Long and Short strategy has achieved an annualized return of over 88% with a maximum drawdown of 14%. We feel that is a very reasonable risk level given the tremendous potential for gains with Turbo.
.
Our Turbo Model does not use the World ETF Ranking. The reason is that our Turbo Model is a "point" trading Model where we advise subscribers to trade only one or two major equity indexes. Given that the Classic Model typically has signals that can last many months, there is more benefit to trying to identify and focus your investment on the best performing areas of the market. World ETF Rankings provide that guidance for where markets are hottest. Thus, with Classic, you gain from both the signal as well as from what index or country ETFs you use. With the Turbo Model potentially issuing signals twice a week during volatile periods, the gains come almost solely from the accuracy of the signal. There is far less to be gained from buying and selling a multi-position portfolio and, indeed, you would likely experience higher trading costs with no better performance as a result of trading more than one or two positions with the Turbo Model. That said, we are also offering our popular "Ticker Tool" feature for the Turbo Model so subscribers can go "off-road" and find their own favorite Turbo investment vehicles.

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