|
You might be wondering....
How do I use Position Cost Averaging
in real life?
Well, It's really quite simple.
To set up one of your stocks in the software
simply enter...
- The Ticker Symbol
- The Number of shares you own
- The Average cost per share
- How much cash reserve you want to allocate
to this stock. To "buy the dips".
Then simply click the quote button,
and the PCA System will tell you exactly how many shares
to buy if the price goes down, and how many shares to sell
if the price goes up.
The exact price and number of
shares to trade in either case. Bull or Bear.
Now thats what I call strategy!
Then you can simply place "good
till cancelled" orders with your broker either
way! Now it won't really matter which way the market goes,
because your strategy is in place either way.
I know, you're thinking... well sure it
works on your hypothetical data, but how does it work in
real life?
Well, I ran some back-tests on some stocks
you might recognize. Here is how the PCA did...
The
PCA Software DOW Jones Report
The
Amazing 1 and 2 Year Returns on DOW Stocks
The
Results are in...
Stocksystem.com conducted
historical simulation testing on the Dow 30 stocks over
the last 1 and 2 years and compared them to the results
of an identical "Buy and Hold" portfolio.
The Study shows that if
two investors purchased 500 shares of every DOW 30 stock
1 year ago the PCA System user would have garnered more
than 400% more profit than the investor who purchased
the exact same stock, and held for the same amount of
time.
The basic
idea behind the PCA methodology is that market risk is
mitigated by using a cash reserve to manage the holdings
on a long term basis. The real benefit here is that the
risk exposure is actually lower.
It is fairly
difficult to compare a "system" like PCA to buy and hold
because the PCA had the additional buying power of the
cash reserve on it's side.
Stocksystem
has taken that into consideration, the study also includes
returns based on an "equal dollar amounts" invested
basis.
|
One
Year Daily Returns
|
|
PCA
Return
|
Buy/Hold
Return
|
B/H
Same $$
Invested Return
|
|
$48,545
|
$11,617
|
$23,234
|
As shown
above, the "Same $amt." return for the buy and
holder doubled and PCA stayed the same. In this case the
PCA still outperforms buy and hold, but really is considered
superior because the PCA system only had limited amounts
of money at risk throughout the test period, and the buy
and holder was 100% at risk the entire time.
While that
may seem like a great improvement over buy and hold, the
2 year results were even more astounding. The PCA System
over a two year period garnered a profit of $63,216
while the buy and holder managed a dismal
($39,733)
As if that
was not bad enough, had the buy and holder used the equal
dollar amount comparison, he lost ($79,466) for
a net difference of $142,682.00
|
2
Year Returns Using Weekly Closing Prices
|
|
PCA
Return
|
Buy/Hold
Return
|
B/H
Same $$
Invested Return
|
|
$63,216
|
($39,733)
|
($79,466)
|
Complete
Return Data for Each Stock for 1 Year Daily Test

In this 1
year daily study the PCA system generated more than 4
times the profit of the buy and holder on the same number
of shares, and if they invested the same dollar amount
the PCA system generated more than 2 times the profit
of the buy and holder.
Complete
Return Data for Each Stock for 2 Year Weekly Test

In this 2 year weekly
study the PCA system generated a $63,216
profit. The buy and holder on the same number
of shares is down ($39,733),
and if they invested the same dollar amount, the buy and
holder lost ($79,466).
For a net
difference of $142,682.00
The PCA software will
not tell you which stocks are going up tomorrow
or what to expect from the indicies next week, but it
will take your own carefully selected stocks and manage
them in the most rational and common-sense manner.
PCA wants you to select
a good stock and stick with it. Trade it through the ups
and downs and let the stock work for you. Time and compounding
will be on your side. After all, Investing is about making
money work for you.
Imagine
the comfort you can have with PCA guiding your trading
decisions...
|
"These
examples demonstrate the power of disciplined, systematic
investing. The PCA system achieves superior returns
while taking on less risk with any stocks, not just
the Dow. Our thousands of users around the globe
can attest to the benefit of being contrarian investors."
Bill
McKinley
President, Stocksystem.com Inc.
|
|
CD
ROM
$149.00
|
PCA
System for Windows
95-98-ME-NT-2000-XP
CLICK
HERE TO ORDER
|
|
Order
the CD-ROM ONLINE
NOW from our
Secure
Server
and it will be shipped via First-Class mail
to your doorstep.
Price
includes shipping and tax.
100% Satisfaction
Guarantee!
CD's are shipped within 3 days.
|
System
Requirements: Microsoft
Windows 95-98-NT-ME-2000 or XP
Recommended minimum 64meg RAM
128meg RAM Preferred
Internet Explorer version 5.0 or higher
|
The
complete details of how the study was conducted are as
follows:
The Simulations
were run in the PCA for Windows v2.4.19
The study
assumes, in all simulations, that all trades recommended
by the PCA software were executed at the closing prices
daily on the one year simulations, and at the weekly closing
prices for the two year simulations.
The study
does not take into account the interest earned on the
money not at risk in the PCA simulations, nor does it
include calculations for taxes, commissions,or any other
trading related expenses or interest.
The calculations
are based on the trading advice generated by the software
on default settings. NO optimization took place during
the testing.
The Dow 30
was selected based on the conservative nature of the stocks
in the index.
For additional
information about the limitations of simulation testing,
please see our disclaimer.
Designed to capture market
volatility and use it to the your
advantage, it is programmed to do 1 thing...
Buy low and Sell High
To
See What The User's Say Click Here

|