How much can I expect to gain or loose?
The returns vary from year to year, depending on the market conditions, but the market timing signals has consistently outperformed the buy-and-hold approach. During the most recent five years of live trading (2006 – 2010) the market timing indicator signals has returned on average 14% each year. The best year so far was 2008 with 39% return. The worst year was 2009 with a 3% loss. Of course the past performance of any trading indicator or methodology is not necessarily indicative of future results. It is important to understand that no trading indicator will win 100% of the time. Drawdowns and loosing trades are normal parts of trading. Drawdowns up to 20-25% or more must be expected.
