Five Year Study Shows SmartStops Advantage
This study shows the benefit of a SmartStops exit strategy over Buy & Hold over a five year period.
A portfolio following a SmartStops exit strategy made a total profit of $191,759
while a portfolio following a Buy & Hold exit strategy actually lost $142,674.
Description & Criteria
Initial capital for the study was $1 million and $100,000 was invested in each of ten stocks on
September 30, 2004 and exited on September 30, 2009. The stocks were sold on a SmartStops signal
and repurchased if the stock hit a 20-day high. All proceeds available from the previous sale
of the stock were reinvested on a stock by stock basis.
Significant Highlights
- SmartStops made a total profit of $191,759.
- Buy and Hold had a loss of $142,674.
- Eight out of ten Stocks showed a profit using SmartStops.
- Only four out of ten stocks had a profit using buy and hold.
- SmartStops exits improved results by $334,433 over this five year period.
- The SmartStops protected portfolio gained 19% over the five years. The unprotected portfolio lost 14%.
Portfolio & Trade Information
| Stock Name |
Symbol |
Buy & Hold
Gain/Loss |
SmartStops
Gain/Loss |
Number of
Trades |
| Alcatel Lucent | ALU | ($61,721.00) | $86,992.00 | 18 |
| Citigroup Inc. | C | ($89,008.00) | ($60,161.00) | 16 |
| Cisco Systems | CSCO | $30,050.00 | $23,845.00 | 16 |
| General Electric | GE | ($51,085.00) | $17,786.00 | 13 |
| Home Depot | HD | ($30,141.00) | ($35,105.00) | 20 |
| Intl. Bus. Machines | IBM | $39,492.00 | $50,719.00 | 17 |
| Intel Corp. | INTC | ($2,442.00) | $35,572.00 | 16 |
| Johnson & Johnson | JNJ | $22,956.00 | $5,293.00 | 18 |
| Merck & Co. | MRK | ($4,151.00) | $49,028.00 | 14 |
| Microsoft | MSFT | $3,376.00 | $17,790.00 | 19 |
| | TOTAL: | ($142,674.00) | $191,759.00 | 167 |
