Understanding the TangoETF Endurance Portfolio Results

New!   Different!    No Market Timing

TangoETF Endurance Advantages

The TangoETF Endurance trading system is a completely new approach made possible by the many asset classes available with ETF's. All the ETF's in this trading system are in asset classes that are uncorrelated with the market equity asset classes. So they do not move with the equity markets such as the S&P500, Russell2000, NASDAQ Composite, or any other market equity index. Since in TangoETF Endurance there are enough asset classes that are not correlated with each other or the equity market, there up and down moves tend to cancel each other out. The system is designed to hold the three top performing ETF's and if they lose their positive trend we rotate to a better positive trend. Therefore no market timing signal is needed for investing in TangoETF Endurance. You can think of this system as asset allocation with rotation. This trading system is not designed for high performance, it is designed to provide 12 - 14% annualized return over the long haul with low risk/low standard deviation and 6 - 8% Max Drawdown. The above investing characteristics have some great new advantages but also there are some new risk's, the risks are covered below.

TangoETF Endurance How Would I Use This?

Two broad suggestions, invest in Endurance Portfolio with the Moderate Portfolio or the Aggressive Portfolio or all three during a Buy signal, then secondly when the Sell signal is on and you go to cash, then invest the cash from the other portfolios in Endurance. Sometimes we are in cash for months and this keeps you in the game during a Sell signal.

While on a Buy signal you could invest in the Moderate Portfolio and or the Aggressive Portfolio and not be invested in Endurance. During the Sell signal  invest the cash from Moderate and or Aggressive in Endurance. Thus using Endurance in place of Money Market. 

TangoETF Endurance Risk

 As you can see from the charts below we do not have much history to evaluate this trading system. Why, because most of the ETF's used in the portfolio's holdings are relatively new. All the portfolio ETF's put together for the design of this trading system allow a start date before 10/31/2006. So the risk is we don't have enough data to thoroughly test for evaluation.

Because of the short data span this system will no doubt be revised to alleviate negative market conditions that are unforeseen at this time. We will be making changes as the trading system is in use, thus this will be a "Beta System" for the foreseeable future.

It is unlikely that all the asset classes would all go down over a protracted period but it is possible. Since there is no market timing used, the TangoETF Endurance Equity Curve could go down over a protracted period. Thus potentially increasing the Max Drawdown resulting in a loss in equity.

General

The TangoETF Portfolios make trades based on a computer automated trading system and thus the results will differ slightly from the actual brokerage trades made in real-time. The results are slightly different because the automated trading system uses the "End of Day" data and the brokerage trades are made during the day (not at the end of day).

Typically, the actual brokerage trades are made in the early morning but some are made at various times of the day. This makes the prices paid for computer trades and brokerage trades different. Also, the computer trades have no transaction fee expenses and brokerage trades have all the transaction fee expenses charged by the brokerage, this also makes a slight difference in the two different results. The brokerage trades also have a spread cost that the computer trades do not have. 

A separate brokerage account for the Moderate, Aggressive, Conservative, and Endurance Portfolio's is maintained at the brokerage (in our case, Fidelity), so the dollar gain can be shown as well as the percentage gain. Subscribers will have similar differences from the computer trading results for the same reasons described above.

Computer Trading System Results - Endurance

The chart below shows the real time computer trading results. The Red line ETF8X is the equity curve since inception of 01/07/08 to 10/31/08 which has a total return of  7.31%, annualized return of 8.92%, Maximum Drawdown -5.68% this is compared to the SP500 (blue) total return of  -31.59%, annualized return of  -36.87%, MAX DD -40.44%. This is history since inception including real time results.

Charts by www.fasttrack.net  will be updated occasionally

Real-Time Brokerage Trading Results - Endurance

The second chart below shows the brokerage trading results.  The Red line ETena is the equity curve since real time inception of 01/07/08 to 10/31/08 which has a total return of  5.30% or annualized return of 6.45%, and Max DD of 2.12% this is compared to the SP500 (blue) total return of -31.59% or annualized return of  -36.87%,and Max DD of 40.49%.  For the same period above the brokerage account is showing a gain of $3180. This account has $60,000.00 cash invested on 01/07/08 for the this return.

Charts by www.fasttrack.net  will be updated occasionally