This chart shows the backtested readings of the current CrystalBull Trading Indicator model, along with the hypothetical returns that would have been obtained had this model been followed during this time period. The CrystalBull Trading Indicator uses a proprietary model to try to determine strength and weakness in the market, and to identify entry and exit points. Our hope is that following this indicator may reduce the "buy-high-sell-low" tendencies of the typical investor.
While the indicator may look like noise, if you zoom in (click and drag left to right across the data range you want to see), it will make more sense. It is a very volatile indicator which can change daily, and this chart has 19 years of data.
This is a beautiful chart! It extends the exuberant years of the late 1990's all the way through the 19 years of its history. It had a few losses, but they were quickly recovered. This is exactly what one should be looking for in a stock market timing model, and it approaches the theoretically-perfect long-only timing model for stock trading. The consistency of performance over this period is reassuring, but no model is perfect.
From Dec. 31, 1996 through Dec. 30, 2016, following this CrystalBull Trading Indicator would have, hypothetically, produced a Total Return 70 times that of a Buy-and-Hold strategy (23298% vs. 332%), with an average compound annual total return of 31.36% APR (The average compound annual total return of the S&P 500 during this period was just 7.59% annually). The Indicator had 230 round turn trades (about one per month). Click here to see the current readings of the CrystalBull Trading Indicator
HOW TO USE: The yellow line in the center chart represents the CrystalBull Trading Indicator. It is displayed in a standard technical analysis format, where a reading above +50 (red line) represents a possible negative trend reversal (market appears overbought, and may trend downward going forward), and a reading below -50 (green line) represents a possible favorable trend reversal (market appears oversold, and may trend higher going forward). The official readings are calculated after all the closing data are in for each day. Trades are done at the market open the following day. The model assumes that the market open prices match the previous days' closing prices. The Indicator chart draws a line from data point to data point. Where that line crosses the green or red line is not relevant; Monitor only the data points along the line.
( HINT: Click-and-drag left-to-right on the top chart (S&P 500) to zoom in to a specific date range. Double-click on S&P 500 chart to zoom back out. )
Click here to see this chart in linear format.