When I developed Secrets of a 7 Figure Trader in early 2018, my goals for it were simple:
- Share my time-tested, systematic investment strategies.
- Espouse the “religion” of systematic trading, including the psychological mindset and discipline it requires.
It’s been a pretty wacky 18 months since then.
A Mixed Market
Since the beginning of 2018, the top-performing U.S. sector — technology (XLK) — is up around 27% (13.9% annualized); while the worst-performing U.S. sector — energy (XLE) — is down 21%.
And the top-performing global stock market, the United States’ (DIA), is up just 9% (4.8% annualized); while the worst-performing global market, South Korea (EWY), is down 23%.
What’s more, gold (GLD), the 30-year Treasury bond (TLT), and the Volatility Index (VIX) are all up together, having gained 12%, 11%, and 42%, respectively.
I’m not particularly surprised that it’s been a mixed market over the past couple of years. It’s expected. The market rarely makes sense, except in hindsight or in the convoluted stories we tell ourselves in an effort to make it make sense.
But that’s precisely why systematic investing is so powerful.
It gives you definitive actions to take, even if you can’t make sense of exactly what’s going on in the markets, the economy, or even in life in general!
You follow the rules of a time-tested strategy and you do well in the long run. It’s as simple as that.
How Have I Done?
As I’ve been evaluating myself and my initial goals of 7 Figure Trader, I’ve realized that yes, I have shared my time-tested systematic strategies. I’ve written countless times about what it takes to be a systematic trader.
That said, the actual buy and sell recommendations I was making in that service weren’t being delivered as systematically as I would have liked.
We actually did fairly well on my discretionary recommendations…
Our signal-closed positions averaged a gain of 7.3%, over an average holding period of just 116 days, or roughly four months. And that works out to annualized returns of just over 26% — better than all the major U.S. sector and global market moves I quoted above.
That said, I don’t think I did as good a job as I could have.
Discretionary stock picking is difficult. And even though I’ve been using my Cycle 9 Alert system’s trend-and-momentum algorithm to “inform” my 7 Figure Trader recommendations, the fact of the matter is that I’ve had to discretionarily choose which signals to recommend and which to pass on.
And the whole time, I’ve had this nagging voice in the back of my head, saying: “This should be more systematic!”
Change Is the Only Constant
It’s cliché, but quite true: change is the only constant.
And deep down, that’s what I love about the markets. Every day, week, month, and year is something different… something new… something slightly “tweaked,” or “evolved” from what is was before.
Think about what disruptive technology has done to the composition of sectors and industries..
Or about the change in mentality that was required earlier this year, when I discussed my Bear Market Action Plan.
The point is, change naturally occurs all around us, all the time. There’s simply no stopping it. So, all we can do is make the choice: Do we adapt to and evolve with the changes or not?
You know where I fall on that decision…
I’m all about adapting and evolving, even as uncomfortable as it can be to let go of the past.
And that’s why I’ve changed how I deliver actionable recommendations in 7 Figure Trader, starting this week.
I’ll no longer being making discretionary, “cherry-picked” buy recommendations.
Instead, I’ll be offering two new ways to follow my systematic, trend-and-momentum approach.
One of these new methods will give you access to all the Cycle 9 Alert signals my algorithm generates, on a weekly basis.
And the second method will involve a monthly sector rotation model, in which we’ll rotate in and out of top-performing global market ETFs.
We’ve just begun this new approach… so if you aren’t currently registered to receive my Green Zone Stocks service, now’s the perfect time to join.