In this post, we show how important it is to have good Market Models to avoid corrections in the stock market.
Our 10 market models help you to time the market. In our Weekly Market Models Review, we publish every week all information you need. Today on 6. Septemeber 2020 seven Market Models have a green light and three a red light. If the Market Models will switch to five green lights or below we will send a warning to our subscribers.
We use our Market Models as a filter for our Loro ETF Model (LEM). In our swing trading setup, we buy only ETFs if six of ten Market Models have a green light. This works really great. The result of this system is today 29.34% for 2020. But more important is that the system made only a maximal drawdown of -3.10%. Both give us an excellent reward risk ratio of 10 (29.34% / 3.1).
Without the Market Models filter, we get only 18.65% with a drawdown of -12.78%. Not so bad for this crazy year but with filter is clearly better!