How much money did you lose in the 2008 market panic?
How about the 2000 ‘tech wreck’? Or 1987’s huge one day drop?
OK, let’s not dwell on your losses! But rather, think about this: what if you could have not only avoided those crashes… but actually profited from them?
Turns out, you can.
The secret is surprisingly simple. You find a system that not only keeps you in the market during the good years – but helps you short in the bad times.
That’s what our Short the World ‘quant’ system does. Quant trading involves building systems that help you make decisions. You feed data in. The system crunches the numbers and spits out a signal. You follow it regardless of how you may be feeling.
That’s vital. Quant trading only works if you’re willing to trust the system and allow it to guide you. Once you hit the system override button and ignore what it’s telling you, you introduce emotions to the mix – which is dangerous.
More good news: by building a system you can test the strength of your algorithm. You can go back and find out what it would have told you to do in past situations. So you can quantify whether your system really would work in highly charged emotional situations… or not.
That’s what Short the World is all about.
It’s built around a proprietary system we’ve developed.
It measures the ‘mood’ of the market, then simply tells you to do one of three things:
- Go long
- Sell and go to cash
- Go Short
Three decisions. No emotion. Just pure rational action.
And here’s the kicker. If you’d just followed this system over the past twenty eight years, you’d have absolutely stormed the markets. Take a look at this chart. It shows the difference between simply buying and holding the FTSE 100… and using our proprietary system since 1990:
Look at that gap. The outperformance amounts to roughly 700% OVER ‘buy and hold’.
Now this is ‘simulated past performance’.
Essentially, it’s the results of our back-testing, when we applied our new system to the FTSE 100 every week over the last 28 years.
Past performance is illustrative. You can’t rely on it when you’re making investment decisions.
Impressive though, right?
This right here is the power of reason prevailing over emotion. It means when the markets crash, you’re not at the mercy of emotional, irrational decision making…
…you’re cold, calm and making money hand over fist.
It’s that simple.