2 TRADING CHARTIST

[TREND1]

As you can see from the above activity in the Actual Cash Account that over the past 3 plus years the portfolio went from a fully invested position without any changes for 28 months (06/02/16 to 10/25/18) to seven changes over the past 6 months. The changes highlight our real time strategy as it unfolds over the course of a buy signal to a sell signal. When our models turned positive (6/2/16) we went to a 100% invested position with an initial stop loss of approximately 7 – 10% below the invested amount. The stop is based on the entire portfolio and not on each individual position. If our stop is violated we sell the invested amount. If our sell signal is successful which it was from the 6/2/16 buy the second part of our sell strategy comes into play. The second part of our sell strategy is when we raise the stop on the portfolio. When the stop is eventually triggered we sell part or all of our positions nailing down our profits. This happened on two occasions (10/25/18 and 12/17/18). As you can see above we utilized our Volume thrust indicator and 90% Rule indicator to add invested amounts to the portfolio. On 4/24/19 our long term momentum models again turned positive in which we went to a 100% invested position. Unfortunately, we were stopped out of a portion of the portfolio just a little more than one month later. When this happens we receive emails from some of our subscribers that are not happy about being stopped out at a loss. With 50 years of investing experience and publishing the Chartist letter we realize that there is a small space between a pat on the back and a kick in the pants if your strategy undergoes periods of underperformance.