Historical Study

To demonstrate Automatic Investor\’s performance in the real world, we conducted an exhaustive study based on the four most followed major US indices, the Dow, Nasdaq, S&P100, and S&P500.We started by hypothetically investing $10,000 in each stock contained in the associated index. In the case of the Dow 30, for example, we invested $10,000in each of the 30 individual stocks that make up that index (for a total of $300,000).We then used daily price updates for 5, 7 and 10 year periods and compared the results to the Buy and Hold strategy. Table I contains the study results.All examples used Automatic Investor\’s DEFAULT model settings. No optimizations were done to increase the returns.Keep in mind that the study used REAL-WORLD data. If you had placed $10,000 in each stock on the given dates and used Automatic Investor to manage yourinvestments, you could have achieved these returns. What\’s more, Automatic Investor obtained its results with LESS RISK than the Buy and Hold strategy. Buy and Holders were 100% at risk over the5, 7 and 10 year periods — that is, 100% of their money was in the market.Automatic Investor users, however, were partly in equities and partly in risk-free cash throughout much of the period. Therefore their exposure to the market was significantly less. This translates into less overall risk when compared to the Buy and Hold strategy where 100% of an investor\’s funds were always invested in the market and thus 100% at risk.In essence, Automatic Investor provided significantly higher returns with much less risk!


Test chart