What PowerIndexing Is...
PowerIndexing is an investment strategy with two principal objectives: (1)
capital preservation; and (2) above market level returns. This strategy is
implemented through a set of optimized trading rules which dictate when
shares in a particular index are bought and sold based upon that week's
PowerIndexing Indicator values.
Index shares were chosen as the investment vehicle of choice due to
their inherently lower level of market risk exposure, vis-a-vis individual
company stocks, and for their liquidity. PowerIndexing Indicators are the
result of extensive market analysis, back testing, probability assessment
and intelligent software systems.
PowerIndexing Indicators are produced through the use of neural
networking and genetic algorithm-based software systems.
How PowerIndexing Works...
Without going into detail on the operation of neural networks and genetic
algorithms, suffice it to say that the PowerIndexing Indicators give a buy
or sell signal indicator value for each of the subject indices for the
upcoming week based upon values determined through computer
systems using both advanced technologies.
For example, the PowerIndexing Indicator for the DIA index shares for the
week of 3/5/01 was $106.07. At its most basic, that is the value of the DIA
at which you BUY if you aren't already holding the DIA shares or,
conversely, the value of the DIA at which you SELL if you are holding the
DIA shares.
The PowerIndexing Indicators go a step further in that they also
objectively quantify the market outlook for that particular index share ( i.e.,
+/- distance from neutral zero) and also include an assessment of the
probability that the subject index share price will close the upcoming
market week at a price equal to or above the PowerIndexing Price
Indicator (i.e., DIA PowerIndexing Price Probability Indicator probability for
week of 3/5/01 was 46.8%).
Why PowerIndexing Works...
The PowerIndexing Indicators work to meet their objectives by having
your capital invested in the index shares only when there is a good
probability of capturing capital gain. Conversely, your capital is withdrawn
from the market into the safe haven of an interest paying money market
account when there is a good probability of capital loss. This allows you
to achieve above market level returns as compared to someone who
buys and holds the same index shares.
Have questions? Use the contact link above to request more information.
All content copyright PowerIndexing.com, Inc. 2008, all rights reserved.
PowerIndexing trademark 2001-2008. PowerLines/PowerLines Pro copyright 2001-2008.
PowerIndexing.com, Inc. 15243 Westchester Drive Omaha, NE 68154-2059
PowerIndexing.com
21st Century Index Investing
What PowerIndexing Isn't...
PowerIndexing is not an automated trading "system". Implementing the
PowerIndexing trading strategy requires active management.