The 401k Trading System (the System) is a mechanical trading system that uses technical analysis to generate monthly trading signals. The System was created specifically for trading 401(k) accounts; however, it can be traded in any type account. Members of this service receive a monthly email with the new trading signal.
This System is easy to trade. Once per month, just check the signal and adjust your account balance accordingly. That's it!
About the System
Many 401(k) Plans include only a handful of Funds from which to choose to invest the account balance. For this reason the System rotates between only these four funds:
Most 401(k) plans have similar funds available to trade. In order to trade this system you need to be able to make monthly changes to your account and have funds similar to the ones listed. Check with your account administrator if you are unsure. I have included a page which shows how the System would have performed with a variety of publicly traded No-Load Funds.
This System was designed for safety. A close examination of the trade history reveals that the monthly signals favor either the Short-Term Bond Fund or the Money Market Fund about 75% of the time. These two funds are very safe. The System only rotates into the higher risk International Stock Fund or Small Company Stock Fund when conditions are very favorable for a gain. The System has 29 wins and only 3 losses while in the two higher risk funds (90.6% win ratio).
Although signals are checked monthly, it is common that the account balance may remain in the same fund for several consecutive months. The System averages about 5 trades per year. For sample trade instructions, see the Signals page.
The System generates signals on the second trading day of each month. Signals are sent to members via email by 9:00 AM EST. The order should be placed before the market closes to ensure it will be executed at the day's closing price. To be clear, trades are entered on the second trading day of the month before the market closes.
The System was developed through back-testing using data from the year 2000 through 2009. The System went live on June 2, 2010. All trades since that date have been made with real money in my personal 401(k) Plan account.