Following the trading recommendations from the generalized 401k plan component list and switching to the top three at the first of every month, holding them for the month would give this following equity curve. Of course, your results will be different since each 401k plan is unique and most likely will not include all the investments in the general 401k list.
Performance For One Year
Performance Since 12/31/2006
The top chart shows a comparison of the Equity Curves between a buy and hold approach of the S&P 500 as a green line and the 401k trading system in red. Please understand that this represents the ideal results of following the trades of the 401k system. It is calculated using the computer model used to generate the recommended trades. As such it is not “real”.
As we go across the top line of the chart, there are various titles with numbers below them. They are:
Number: Computer code identifier for the equity curve. #1 shows the Spider ETF with is a dividend adjusted representation fo the S&P 500. #2 shows the 401k trading system equity curve.
PRICE: Price at the right hand edge of the chart. The price value for the 401k equity curve is computer generated.
%CHG: Shows the % gain or loss over the Last day.
%GAIN: Shows the % gain or loss over the entire period of the chart.
%CAR: The % annual return over the chart period.
%MDD: The maximum daily drawdown in percent over the chart.
UI: Ulcer Index, a measure of pain. A lower number is better.
UPI: Ulcer Performance Index, a risk adjusted measure of return.
One thing to consider is that the equity curve is based on the total universe of investment selections used in the model. Your results will differ depending on the investment selections available in your 401k. Thirdly, all trade executions are performed at the specified days in the trade table. Any delay in your execution will also have an effect on the overall performance.
The bottom chart shows the daily Drawdown of the 401k trading system. Portions of the curve below the zero line indicate that there has been a pullback from a previous high.