Our
Service
TimingCube
has developed an innovative investment system that combines a broad
stock market Trend Timing approach for Buy/Sell
directional guidance with the momentum of top-ranked world markets.
At the heart of the system is our 100% mechanical, unemotional market
timing Model that is both powerful and simple to use. Launched in
2001, it uniquely identifies the broad predominant stock market trend
and therefore provides investors with an effective "all-weather"
alternative to Buy and Hold investing. Because world stock markets
tend to be very correlated, our signals can be used to successfully
time both U.S. and international ETFs. Recognizing that relative strength
always changes between markets, we also developed a World
ETF Ranking Model to identify the geographies that show the
strongest momentum and potential for superior returns. By combining
these two dimensions, a timing model that identifies the broad market
trend and a ranking model that gives us the best markets to invest
in, TimingCube
provides a unique tool designed to help investors achieve outsized
returns over the long term.
|
Getting Started |
 |
Getting started
with TimingCube
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,
Sell or Cash)
and what markets are ranked best.
Our Trend Timing Model is run daily after the New York stock market
closes, and we update our Web site and Signal by Phone message accordingly
by 9:00 pm ET that same day. If a new signal is triggered, TimingCube
also automatically sends e-mail notifications to all active subscribers.
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 its part,
our World ETF Ranking is updated on a weekly basis, after the close
on Friday. A "Weekly Update" is also 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 service, simply follow the steps below.
Getting started
with TimingCube:
- Decide how
to allocate your funds. Our World approach allows
you to diversify internationally by investing in the strongest
world markets during Buy
signals. You can also use our Trend Timing 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 (QQQQ, IWM and SPY respectively) according to our signals.
- Select your
strategy between the more aggressive Long & Short,
which shorts the market during Sell
signals, and Long Only, which simply goes to
cash when our signal is Sell
- Log in to
the TimingCube
Web site and obtain our current signal and World ETF Ranking's
Top 5 ETFs from the "Signal and Ranking" page
- Establish
and maintain your portfolio according to the following table (see
the "Strategies" section below
for all the details):
| |
Implementing
the Strategies with ETFs |
| |
Signal |
World |
U.S. |
Nasdaq
100 |
Russell
2000 |
S&P
500 |
Strategy
1
Long & Short |
Buy |
Buy
the World ETF Ranking's Top 5 ETFs.
Rebalance every 4 weeks
|
|
|
|
Sell |
|
|
|
|
Cash
|
Cash
or
Money Market Fund |
Cash
or
Money Market Fund
|
Strategy
2
Long Only |
Buy |
Buy
the World ETF Ranking's Top 5 ETFs.
Rebalance every 4 weeks
|
|
|
|
Sell
or
Cash |
Cash
or
Money Market Fund |
Cash
or
Money Market Fund
|
Note:
when the signal changes, any existing position should be liquidated
before the new one is taken.
|
Strategies |
|
Many subscribers
use our service to trade only specific broad U.S. indexes, such as
the Nasdaq 100
, Russell 2000
or S&P 500
. We report the returns obtained using the corresponding ETFs on our
page. However, better performance is achieved by diversifying beyond
just the U.S. indexes to invest in the top-ranked markets. Investors
who want to take advantage of this opportunity will use our World
ETF Ranking in conjunction with our Trend Timing signals (we refer
to this as the World approach). Whether you decide
to stick to U.S markets only or instead follow the World approach
to diversify internationally, 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 is designed to make you profit whether the market
is going up or down. We believe this strategy offers the best
risk/reward ratio for most investors. It keeps you invested whether
our timing Model tells us that the predominant market trend is
up or down:
- When our
Model issues a Buy
signal, you liquidate your current short positions (if any),
and then buy the market through shares of your selected investment,
therefore establishing a long position. Practically, if you
follow the World approach, you invest equally in the World ETF
Ranking's Top 5 ETFs and rebalance every 4 weeks while the Buy
signal remains in effect. If you trade a specific index such
as the S&P 500, you just buy the corresponding ETF (SPY
in this case).
- When our
Model issues a Sell
signal, you liquidate your current long positions (if any) and
then sell the market short by actually shorting shares of your
selected investment or buying the corresponding inverse fund,
therefore establishing a short position. Practically, If you
follow the World approach, you sell your 5
ETF positions and go short QQQQ shares or instead buy the corresponding
inverse ETF (ticker symbol PSQ). If you trade a specific index
such as the S&P 500, you just short the corresponding ETF
(SPY in this case) or instead buy the corresponding inverse
ETF (ticker symbol SH).
- When our
Model issues a Cash
signal, you liquidate your current positions, long or short,
and keep the proceeds in cash or in a money market fund.
Note:
Since selling short requires a margin account, qualified retirement
accounts such as an IRA or a 401(k) are not eligible for shorting
stocks. However, the same effect can be achieved by buying inverse
ETFs or mutual funds, as these investment vehicles are authorized
in retirement accounts.
- Strategy
2: Long Only
This is the most conservative fund investment strategy we follow.
It keeps you invested only when our timing Model tells us that
the predominant market trend is up, and lets you step aside during
downtrends:
- When
our Model issues a Buy
signal, you buy the market through shares of your selected
investment, therefore establishing a long position. Practically,
if you follow the World approach, you invest equally in the
World ETF Ranking's Top 5 ETFs and rebalance every 4 weeks
while the Buy
signal remains in effect. If you trade a specific index such
as the S&P 500, you just buy the corresponding ETF (SPY
in this case).
- When
our Model issues a Sell
or Cash signal,
you liquidate your long positions and keep the proceeds in
cash or in a money market fund.
You can check
the performance and returns for both strategies on the
page. For investors who follow the World approach,
we also provide results for the Buy and Rebalance
strategy, which ignores the timing signals altogether and stays fully
invested in the World ETF Ranking's Top 5 ETFs at all times, rebalancing
every 4 weeks. Because this strategy is always invested and never
short, it is simlar in concept to the Buy and Hold approach for a
single index/ETF and therefore provides for an appropriate way to
compare returns. If you are a subscriber and log in to the site, all
returns on the
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.
Even though we favor ETFs, mutual
funds can be used to implement our strategies and are viable alternatives
for qualified retirement accounts. Direxion,
ProFunds and
Rydex offer
fund families that are suitable for that purpose, with mutual funds
designed to match or inverse the performance of most indexes.
|
Investor Profile |
|
Our service is
intended for serious long-term investors, not frequent traders or
speculators. Our typical subscribers seek a low-maintenance approach
that outperforms under all market conditions. They do not have the
time or desire to spend their days studying markets and trading. On
average, TimingCube
only issues three to five signals in a typical year, allowing investors
to minimize their trading activity.
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 or mutual funds. Our service is therefore well suited
for managing portions of a retiree's nest egg.
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.
|
Our Models |
|
Trend
Timing Signals
TimingCube's
proprietary stock market Trend Timing Model is based primarily on
price and volume action of the Nasdaq Composite Index
. Developed in the first half of 2001 using years of market data and
experience and, having been backtested to 1989, it issued its first
"live" signal on June 18, 2001, with the primary intent of timing
the QQQQ
. We then founded our Company and launched the TimingCube
Web site in the fall of 2001. As our stock market analysis and investment
research established the high correlation between our Nasdaq Composite
Index driven Model and other major market indexes, U.S. and international,
we extended our reach from strictly QQQQ timing to other indexes such
as the Russell 2000
and the S&P 500
, as well as numerous other world stock markets. Investing according
to our timing Model has proven extremely profitable, as shown on our
page. For complete accountability, our trades and returns are independently
verified and tracked by the Hulbert Financial Digest and TimerTrac.com.
Results and backtesting for the current timing Model which went into
effect on July 14, 2006 can be found on the
page.
.
Based purely on changes in market conditions, TimingCube's
Trend Timing Model will generate a Buy,
a Sell or a Cash
signal. Once a signal has been issued, it remains in effect until
a new signal invalidates it.
A particular type of Cash
signal, similar to a stop loss, is automatically issued by our Model
if the Nasdaq Composite Index moves against our current position by
more than 9% from our Buy
or Sell entry point. This
is designed to keep any losses to a reasonable minimum from the entry
point when we are most vulnerable, as no timing Model will always
be 100% right. Once the Nasdaq Composite Index has advanced 7% or
more from our entry point, the maximum drawdown limit is ratcheted
up to 15% and the Cash
signal becomes a trailing stop. This means that from then on, if the
Composite declines 15% from its most recent closing high on an active
Buy signal, or moves up
15% or more from its recent closing low on an active Sell
signal, a Cash signal will
be issued and you will be notified. When a Cash
signal is generated, you should liquidate your current long or short
investments and keep the proceeds in cash or in a money market fund
until a new Buy or Sell
signal is issued.
World ETF Ranking
TimingCube's
World ETF Ranking Model compares the momentum of various broad world
market ETFs over a multi-month period to identify the ones most likely
to outperform. The algorithm's specific ingredients and recipe are
proprietary and therefore are not disclosed.
There are many stock markets around the world but we automatically
narrowed the field with some of our requirements, such as a minimum
of 5 years of publicly accessible index ETF data. We currently rank
32 domestic and country Exchange Traded Funds (ETFs) divided as follows:
- United States
(8 ETFs representing different market segments)
- North/Latin
America (3 country ETFs)
- Europe (11
country ETFs)
- Asia/Pacific
(9 country ETFs)
- Africa (1 country ETF)
Market |
ETF
Ticker |
Large
Cap Dow Jones 30 |
|
Wilshire
5000 |
|
Large
Cap Nasdaq 100 |
|
Nasdaq Composite |
|
Small
Cap Russell 2000 |
|
Mid
Cap S&P 400 |
|
Large
Cap S&P 500 |
|
Micro
Cap Russell 1000 |
|
Country |
ETF
Ticker |
Brazil |
|
Canada |
|
Mexico |
|
Country |
ETF
Ticker |
Austria |
|
Belgium |
|
France |
|
Germany |
|
Italy |
|
Netherlands |
|
Russia |
|
Spain |
|
Sweden |
|
Switzerland |
|
UK |
|
Country |
ETF
Ticker |
Australia |
|
China |
|
Hong
Kong |
|
India |
|
Japan |
|
Malaysia |
|
Singapore |
|
South
Korea |
|
Taiwan |
|
Country |
ETF
Ticker |
South
Africa |
|
| Note:
Investing in international index ETFs comes with a set
of specific risks which at times can include country or regional
economic/natural/political issues impacting local stock markets,
poor correlation with world markets and/or TimingCube
signal, high volatility, low liquidity and currency fluctuations. |
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