Historical Performance (Updated Weekly)
Signal Performance from April 13, 2017 (Inception) through June 21, 2019:
- Signals Matter: Up 72%
- S&P 500 Index: Up 26%
Signal performance is up 46 percentage points (4,600 basis points) over the SP500 Index from Inception.
Investment Signals & Commentary
Signals Matter, LLC provides investment Signals to Subscribers Only via Signals Watch. These Buy Long, Sell Short, Hold and Exit Position Signals are provided for chosen Stocks and ETFs (Exchange Traded Funds) based upon proprietary algorithms and fundamental overlays which combined, solve for entering long-side trades when selected securities are oversold, and entering short-side trades when selected securities are overbought. Signals are triggered weekly and remain established pending technical or fundamental violation, at which time Signals are exited. Signal instruction and associated commentary is provided to Subscribers via the Subscriber’s own, personalized Dashboard which is updated daily with charts, commentary and end-of-day performance.
Relative Performance is a Poor Measure of Investing Success or Failure
Signals Matter seeks to provide Subscribers with reliable absolute returns described in Signals Matter’s FREE Investment Primer, without regard to a benchmark. While we have compared our returns in the Performance Chart above with the S&P500 Index to give readers clarity on performance against an Index they know, we do not measure our success by what the S&P500 may be doing on a relative basis. Rather, and importantly, we measure our success by our risk-adjusted performance, namely by performance ratios that measure rate of return as a function of the volatility required to achieve return, which Signals Matter believes is a superior approach.
Here’s What Matters
At Signals Matter, we let our profits run and cut our losses short, containing both downside volatility and absolute loss. The S&P500 is simply a market cap-weighted basket of stocks that is not risk-managed. S&P500 returns measure past performance of taking a long-only position in the underlying stocks. By contrast, Signals Matter effectively trades volatility, long and short, across strictly overbought and oversold securities. We take an independent view with our Signals, which is why our daily correlation with the S&P 500 is significantly negative. And we avoid excessive risk, which permits those upside returns to compound without a lot of downside. We earn our returns differently. That’s what matters. Not the S&P500.
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¹ Performance presented is verified by Signals Matter to reflect the model performance an investor may have obtained had it fully invested in each Signal (long and short) posted by Signals Matter from April 14, 2017 to the date reflected above and does not represent performance that any investor actually attained. Trade size and commissions are not considered. Model performance presented is based upon Signals Matter proprietary algorithms and fundamental overlay which combined, solve for entering long-side trades when selected securities are oversold, and entering short-side trades when selected securities are overbought. Long and Short Signals are triggered weekly and remain established pending technical or fundamental violation, at which time Signals are exited. Entry and Exit daily and weekly closing price data is sourced from Bloomberg LP. There can be no assurance that an investor will achieve profits or avoid incurring substantial losses by investing in the Signals presented by Signals Matter. ² Sharpe Ratio measures the risk-adjusted performance of an investment by measuring the return of a trading strategy per unit of standard deviation, typically referred to as risk. The Sharpe Ratio above has been modified to exclude consideration of the risk-free rate in the numerator. ³ Sortino Ratio is a modification of the Sharpe Ratio above that penalizes only those periodic returns less than zero, to measure downside volatility only, rather than both upside and downside volatility as with the Sharpe Ratio. Signals Matter considers the Sortino Ratio a better measure of return-generating efficiency as it does not penalize returns for upside volatility. ⁴ Monthly Returns are daily returns summed for the month; Annual Returns are monthly returns compounded for the year. Returns from Inception are daily returns summed for the period, then annualized. Past performance is not necessarily indicative of future results. Copyright © 2018 Signals Matter, LLC. All rights reserved.