TMTG (or just "Merlin") is an Excel-based quantitative trading program that utilizes an extensive array of price-based and breadth-based technical indicators in a proprietary rule weighted algorithm to generate a daily signal for trading the Powershares QQQ ETF (Symbol: QQQQ, formerly Nasdaq 100 Trust) and related trading instruments. The system maximizes the historical and statistical correlation to Truth for optimal market performance against the NDX since Jan 2003. Please refer to the below chart for graphical comparisons of backtested trading strategy results using integrated Stops (Trend Equity, Loss, Profit, and Gap), No Stops, and the QQQQ Buy & Hold index baseline. The system trades daily at either EOD or NDO and at 1X or 2X margin depending on prevailing market conditions, which significantly mitigates the detrimental effects of overnight gaps and improves long term performance. Algorithm enhancements are made periodically as a part of an ongoing continuous process improvement program. Daily live trades since Feb 2008 and backtested results prior to that time (the current version of the program was not in existence previously) can be viewed at the "Live and Backtested Results" link below. Utilizing leveraged instruments such as the ProShares 2X Long/Short ETFs (QLD/QID) or up to 100% margin (2X), returns could be significantly increased, and since the ETFs do not have a time-decay component, the investor is not exposed to the higher risks and complexities of futures/options trading, although many subscribers effectively employ the system to execute profitable trading strategies using those vehicles as well.

Equity Growth Chart

One Month Trend Chart System Statistics Table

Current assessment: Extraordinary buying demand driven by unprecedented levels of Government-induced liquidity seriously affected the stochastic nature of the markets for a large portion of 2009. Even though the straight signal performance was flat for a good part of that time, trading the live signal with equity stops would have significantly mitigated the drawdowns. The performance of that strategy continues to reach regular periodic new highs, and as long as patience and trading discipline are exercised, TMTG believes holds the best promise for steady, consistent gains going forward.

Please click on the following link to view up-to-date detailed live performance data.

Live and Backtested Results (updated ~ weekly, this Excel file shows the 1X and 2X results with and without Stops; backtested prior to 2/6/08, live signal since)