MARKET CONDITION
CURRENT ALLOCATION
market condition
current allocation
EXITS (INDICATORS) USED IN THIS MODEL:
INDICATOR
TIME-FRAME
STATUS
LAST CHANGE
MEDIUM
NONE
Jan 1, 2001
LONG
NONE
Jan 1, 2001
SECTOR
ALLOCATION
ETF EXAMPLE
MUT. FND. EX.
The Risk NumberĀ® from Nitrogen is an objective, quantitative measurement of an investorās true risk tolerance and the risk in a portfolio. The patented technology calculates a ārisk scoreā on a scale from 1-99, utilizing a scientific framework that won the Nobel Prize for Economics.
MAXIMUM EQUITY ALLOCATION
MINIMUM EQUITY ALLOCATION
Reallocation quarterly
None.
All activity takes place at quarterly intervals.
When Galactic Shield signals positive at a quarterly reallocation.
When Galactic Shield signals negative at a quarterly reallocation.
This Model combines relative-strength rankings, current Market trends, and predetermined minimum and maximum Equities exposure. It provides a very effective way to deal with typical "investor risk profile" considerations, and is a great choice for 401k and other retirement accounts.
Model Description
The Simple Trend And Rank ("STAR") Min/Max Model is a low-activity Model designed for risk-managed outperformace over the long term. The model seeks to be maximally invested in Equities when Equities are trending upwards, and minimally invested in Equities when Equities are trending downwards. The STAR Min/Max Model portfolio is reallocated quarterly. The trend measurements used by the Model are intermediate to longer-term (months to quarters timeframe). The Model does not use the STARFLUX or DELTA-V Indicators.
Because the STAR Min/Max Model acts only at quarterly intervals, and concentrates on asset classes commonly found in 401k-type retirement plans, it is a great choice for managing client retirement accounts.
Construction
At the start of each quarter, if Galactic Shield is in an uptrend, then Equities are assigned the maximum allocation for the quarter. However, if Galactic Shield is in a downtrend, then Equities are assigned the minimum allocation for the quarter.
The Equity portion of the portfolio consists of equal allocations to the top 5 Type 1 and 2 asset classes from the Asset Class Ranking Table found on page 1 of the daily publication.
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The Fixed Income portion of the portfolio is a broad-based Bond Index Fund, such as the Vanguard Total Bond Market Index Funds "VBMFX" and "VBTLX", or the ETFs"BND" and "AGG". If the Fixed Income/Bond asset class is in a Bear market state, the Fixed Income portion is kept in Cash/Money Market.
The performance returns illustrated do not represent actual client accounts and are net of the highest management fee and trading costs which is 0.80%. Returns reflect since inception, one, five and tenāyear periods, and are reflected in U.S. dollars and assume that dividends are reinvested.
The strategies employed may involve technical trading techniques such as trend analysis, relative strength, moving averages, various momentum and related strategies. Technical trading models utilize mathematical algorithms to attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, new data is accurately incorporated, or the software can accurately predict future market, industry and sector performance.
