Performance Impact

Adding thrust to timing indicators is said to add 1 percentage point per year of outperformance versus buy and hold. Buy signals accompanied by thrust tend to produce more profitable market moves. The article says 1% annual outperformance…

1 sources - 6 claims

Adding thrust to timing indicators is said to add 1 percentage point per year of outperformance versus buy and hold. Buy signals accompanied by thrust tend to produce more profitable market moves. The article says 1% annual outperformance can compound into a large final-equity difference over 20 or 30 years. Thrust has psychological value because it keeps investors closer to major turning points. Trend-following buy signals without thrust can still be profitable but are typically less profitable than thrust-confirmed signals. Thrust improves the average profile of a trade but does not guarantee success.