Bull & Bear Tracker
The Bull & Bear Tracker is a trend-trading-algorithm which is powered by the US Dollar/Japanese Yen exchange rate. The Bull & Bear Tracker was developed by Michael Markowski who has a successful track record for developing high performance trading and investing algorithms. The Bull & Bear Tracker provides signals to trade the following:
- Direxion Daily S&P 500 Bull 3X Shares: SPXL
- Direxion Daily S&P 500 Bear 3X Shares: SPXS
To maximize profits, a trader of the signals remains 100% invested in the SPXL when the signal is GREEN or in the SPXS when the signal is RED. When the signal changes, the trader sells the SPXS and buys the SPXL; or vice versa. The return on the signals issued from April 9 (when the first signal [GREEN] was published) through October 12, 2018 was 40.8% versus 6.7% for the SPY. The Bull & Bear Tracker’s signals are as follows:
- GREEN utilizes the SPXL to generate significantly higher profits than the SPY when the S&P 500’s volatility is low. From April 9th through October 4th, when the S&P 500 was in an uptrend, the SPY increased by 11.9%. The return for the GREEN signals to trade the SPXL for same period was 30.6%.
- RED utilizes the SPXS to generate profits when the volatility of the S&P 500 is high. From October 4th through October 12th, 2018 (when the signal went from GREEN to RED), the SPXS increased by 14.4%. This compared to a decline of 4.7% for the SPY during the same period.
The table below includes all of the Bull & Bear Tracker’s media verifiable signals from its April 9th launch date through October 4, 2018.
Bull & Bear Tracker Is Live
A trader must be prepared to incur losses for when the volatility of the S&P 500 becomes excessive. According to my back testing, this occurred twice during the first quarter of 2018. Losses of 6.8% for a RED signal and 7.5% for a GREEN signal were incurred. However, even with the two losses; the other signal changes in January, February and March of 2018 more than made up for the losses. The combined net gain for the Bull & Bear Tracker’s back tested signals from January 2 to April 9, 2018 was 13.3% versus a decline of 1.8% for the SPY. Because of the potential for volatility to become excessive, the Bull & Bear Tracker’s signals should be utilized only by traders who are willing to commit to utilizing them for a minimum of 12 months.
A further benefit of the signals is that they can be used in conjunction with technical analysis to maximize performance when trading S&P 500 ETFs; specifically including the SPXL, SPXS and SPY. The Bull & Bear Tracker is among the world’s best trend-trading-algorithms for three reasons:
- Dollar/Yen exchange rate, which is the source of the signal changes, is not susceptible to manipulation. The reason for this is the Dollar/Yen currency pair is the second most liquid trading instrument in the world.
- The S&P 500 and the ETFs which trade it (including the SPY, SPXL and SPXS) is the world’s most liquid investment vehicle.
- Since the signals trade triple leveraged ETFs, they can potentially produce annualized double digit returns in bull and bear markets.
From April through October of 2018, the Bull & Bear Tracker underwent testing and tweaking to reduce risk and maximize performance. The Bull & Bear Tracker’s signals are now exclusively available to subscribers. Click here to subscribe to the Bull & Bear Tracker’s signals.
For more on the Bull & Bear Tracker see the following:
- April 9, 2018 article, “NIRP Crash Indicator Renamed ‘Bull & Bear Tracker’; Signal Now GREEN”.
- October 4, 2018 article, “Bull & Bear Tracker signal RED, Crash Now Underway”.
- Educational information explaining the role of the Dollar/Yen exchange rate as leading indicator for the S&P 500 is available on BullsNBears.com’s USD/JPY Indicator research page.
- Markowski algorithms