How to Use Sector Rotation to Supercharge
your Investment Strategy.

You Need Sector Rotation Strategies with Track Records you can verify.

Books and magazines are littered with sector rotation strategies. But how do you know they work as advertised? YOU DON'T unless you can test the historical results yourself.

With ULTRA Sector you get Multiple Rotation Strategies that can be Verified Against a Historical Database.

Below is the result of a Historical Analysis of the MAROC Sector Rotation Strategy from 01/02/88 to 12/13/01. You can verify MAROC's Historical Results with a trade-by-trade listing or with yearly summaries as shown below.

MAROC has averaged 26.02% annually with 63.89% winning trades and a -28.6% maximum drawdown.
Compare this to the Nasdaq 100 which over the same period has returned 17.8% annually with a 76% maximum drawdown.

With ULTRA Sector and ULTRA you can test a Rotation / Timing Combination

With ULTRA you can test a timing strategy using the sector rotation results as the trading vehicle thereby perfectly modeling a Rotation / Timing combination.

For example:

A simple timing strategy can be constructed by letting ULTRA's ND and LHD systems each be responsible for 50% of the account.

Therefore, if either of ND or LHD is on a buy signal, you'd take a 50% invested position using MAROC to decide which sector fund to purchase. If both of ND and LHD are on buy signals you'd take a 100% invested position.

As you can see above, this simple timing example increases the annual return (CAR) is while the maximum drawdown is drastically reduced to -18.7%, with almost 70% winning trades.

The ULTRA Sector Database

The Sector Historical Database is based on the Rydex family of sector funds. Rydex does not limit trading or impose minimum holding periods.

Any rotation strategy that contains minimum holding periods (such as those designed for the Fidelity Selects) is not stable. The results depend on the start date of the analysis. For example, a strategy may be profitable from 01/02/90 to present but if you started it on 01/02/89 you'd get a completely different set of results.

The Rydex Sectors consist of the following funds:

Banking, Basic Materials, Biotechnology, Consumer Products, Electronics, Energy, Energy Services, Financial Services, Health Care, Internet, Leisure, Precious Metals, Retailing, Technology, Telecommunications, Transportation, Utilities, Money Market.

The database contains Rydex Data as far back as it exists and then the highest correlating Fidelity Select for earlier data back to 01/02/88.

With ULTRA Sector you can Conveniently run all the Rotation Strategies at once

A couple of keystrokes and you immediately know all the current positions of the ULTRA Sector strategies.

If you'd like information on how to order ULTRA Sector 1.0 click HERE.

ULTRA Financial Systems Inc.
P.O. Box 3938
Breckenridge CO 80424
Phone: 970-453-4956 Fax: 970-453-2467