Frequently Asked Questions

That is understandable, but instead of using all of our services, some of our members strictly use the signals issued by the market direction model with a 1-times ETF such as QQQQ. You can see from our track record shown in the first two tables here http://www.virtueofselfishinvesting.com/results that the big gains made when the model is right more than make up for the small losses along the way, thus the model's long term returns of 33% per year using the NASDAQ Composite (a 1-times ETF such as QQQQ would be the equivalent).

The other risk is that it is nearly impossible to know when the market will calm down, how long a trend will last, and when the market will become volatile again. So over the years, I realize that when it comes to the market direction model, it is best to weigh each change of signal the same, thus the same position size in a normal or inverse ETF each time there is a signal change tends to yield the best results.