review of the back-tested results illustrates how following our system can substantially decrease investment risk and improve the consistency of positive returns. Our stock trading system software has been specifically designed to generate positive results in both up and down stock markets - reducing risk while improving returns. Our system can serve as a perfect complement to traditional long-only portfolios or stand alone as a robust, high-performance investment strategy.
Long Term Performance - Compound Annual Growth Rate ARTS Agressive Growth Strategy vs. Buy & Hold
Performance data calculated on: July 2, 2010| ARTS Return | Buy and Hold | Difference | |
| ETF-iShares S&P Lat.Am. 40(ILF) | 85.23% | 24.98% | 60.25% |
| ETF-iShares MCSI Brazil (EWZ) | 73.44% | 12.36% | 61.08% |
| Russell 2000 | 70.77% | 2.56% | 68.21% |
| ETF-iShares South Korea (EWY) | 69.37% | 8.45% | 60.92% |
| ETF-iShares MSCI Emg Mkts (EEM) | 68.36% | 17.92% | 50.44% |
| ETF-iShares MSCI Mexico (EWW) | 67.34% | 8.83% | 58.51% |
| ETF-SPDR S&P Homebuilders (XHB) | 67.30% | -22.84% | 90.14% |
| ETF-iShares Russell 2000 (IWM) | 66.46% | 2.33% | 64.13% |
| S&P 600 SmallCap | 66.45% | 4.74% | 61.71% |
| ETF-iShares S&P Sm Cap 600(IJR) | 65.90% | 4.99% | 60.91% |
Click here for a detailed view - Aggressive Growth Strategy (long, short, cash) Click here for a detailed view - Growth Strategy (long and cash only)
The catalyst of our research was the hypothesis that timing the market can add value over a simple buy-and-hold approach. Our results prove that a proactive timing system can produce dramatically higher investment returns. Investors who entered the market at the peak of the S&P 500 in 2000 had to wait seven years simply to break even. Our system is designed to avert this scenario, which inevitably disrupts long-term investment planning. To see our returns over the same period, click here.
We trust that the detailed performance data provided will convince you that using our stock market trading system software is both prudent and profitable. For every stock index and ETF covered, we present the overall CAGR (compound annual growth rate) as well as a year-by-year breakdown of ARTS, Inc. portfolio returns. We also provide detailed statistical information helping to quantify the risk assumed under our system versus the buy-and-hold approach for the particular index under study. In particular, the Ulcer Index and Sortino Ratios - which measure drawdown and downside volatility respectively - offer clear evidence of the advantages of our system over the traditional buy-and-hold approach. As our statistical and performance results demonstrate, we have paid close attention to the analysis of our portfolio results.
