Cruise Control Portfolio( CCP ) Info
 

This portfolio is designed to perform sector rotation automatically.

When the sectors are trending Up and Market Indicators are favorable, the top ranked sectors should provide the best Gain per unit Risk returns.

   The CCP ranking scores are homogeneous in the sense that for a specified time window the CCP scores of all trading datasets are directly comparable.

    The CCP tables also include ending velocity and acceleration for each trading symbol. It is important to realize that minus signs imply weakness and the associated chart should be checked out.

 


    The Cruise Control Portfolio (CCP) employs a proprietary optimization technique that is superior and circumvents the pitfalls of the regression approach which was previously employed.

The CCP tables are most useful when an Up trend is occurring. The Indicator page attempts to ascertain the current Up or Down status of the Market Direction.

Assuming the indicators are mostly Green, then the CCP tables are useful. Selecting the Top of the table should produce the best results.

Optimization and Maximum Gain to Risk ratios will indicate the safest fund to employ for an Up trend. However, you should always verify the best CCP fund by charting the fund for short, medium and long term time frames.

However, in a Down Market, when the Indicators are mostly Red, the CCP Tables should not be used.

An alternate market strategy is necessary.

ProShares.com now offers ETFs for shorting or going long with leverage for some major market Indices. These new ETFs allow someone in an IRA to hedge their positions without suffering the limitations of trading mutual funds.

 

    Note: Positions in any of the above Sectors would require protective and trailing stops. Where protective stops take you out on large daily/hourly negative NAV changes and trailing stops take you out when the NAV declines from it's peak value by a specified stop percentage. (e.g.) 6% or a moving average crossover has occurred.
     


E-mail Comments to Schippi@SelectSectors.com