Post #1445 by shrewdedbydesign on the Mechanical Investing board

Investment Strategies / Mechanical Investing ❤

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Backtests show that these signals do not improve overall rate of return (CAGR). What they do well is reduce volatility - and take you out of the market to avoid situations that in the past have produced major losses (2000-02, 08-09, 2011). They will not catch short term minor market tops or bottoms.

The above text is from the Timing Methods page:

http://mechinvesting.wikidot.com/timing-methods

Is it to be understood that even though timing methods would keep us out during major losses,
the overall CAGR encompassing such periods is not improved?

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