Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

A Simple Market Timing Trading Strategy On The Monthly Time Frame

Cumulative Equity & DD Results for each 1$ invested in 1965

Leverage Factor: 1 (=No leverage)

Leverage Factor: 1.5

Leverage Factor: 2.5

Leverage Factor: 4

A Leverage Factor of 5 … Will Kill you / your Account! … LOL!

As you can see from the posted screenshots, the model didn't work well in 1987 (especially when a high leverage was used). With a leverage of 4x, the portfolio would have lost as much as 85% in a single week.