Risk Profile: Aggressive Growth
The Cook S&P 500 Index ETF Trading Strategy ("Cook") is based upon an overbought or oversold indicator designed to capture directional market moves using S&P 500 Index Exchange Traded Funds. While Cook has a number of specific trade setups, the overall framework of his trading is guided by the Cook Cumulative Tick IndicatorTM ("CCT"). The CCT is a proprietary indicator designed to identify overbought / oversold extremes in the US equity markets. This strategy trades approximately 20 round trip trades per year and spends a considerable amount of time invested in cash.
Portfolio Diversification and Correlation Analysis:
When diversifying your portfolio, it is important to understand how each strategy correlates to your other positions. We believe the key to long-term success is how you weave a number of low-correlating strategies into your portfolio and manage those allocations over time.
For an explanation on strategy correlation and comparisons to other indices, click on the Correlation Matrix link on the right. A 1.00 correlation would be a perfect correlation. A 0.000 correlation reading would imply a non-correlation. Generally, readings below 0.50 reflect a low-correlation.
|
 |
|
