In our last coverage, we had a detailed interview with the renowned financial wizard, Leon Tepper, his views on the markets, and his offerings through the TeppersList.com platform. As a follow-up, today we are going to look at one of the most advanced algorithms in the world of stock market investing, developed by Mr. Tepper himself, known as the “Invest & Forget” approach. We seek to analyze the need for such an algorithm, not for professional traders but more for retail investors and the general public and why this offering could be a real game-changer for the ordinary investor.
Passive Investor Group And Their Needs
It is logical to infer the fact that not everybody today has the time to sit and monitor, analyze, shuffle, and re-balance their respective portfolios on a daily or even a weekly basis. The average working professional struggles to have any time for even knowing where the markets are headed, let alone sitting and analyzing the fundamentals and the valuations of different stocks before determining where to invest. In absolute numbers, such people far exceed the number of “active” investors i.e. the people who spend more than just a few hours each week to manage their money. However, it is fair for even the passives to expect triple-digit returns on their investments which is why the “Invest & Forget” solution is ideal for them. Make no mistake, Tepper’s idea of “Invest & Forget” doesn’t mean that is subscribers forget about their investments. It simply means that these particular investment vehicles are geared for investors with a long-term outlook. Its target group is these working professionals that are passive investors but who are looking for phenomenal returns with limited risk.
Answering The Four Big Questions
Every investor has four fundamental questions when it comes to stock investing:
- What to buy?
- How much to buy?
- When to buy?
- When to sell?
Very often, people are able to answer questions (a) and (b) on their own using their own bit of time and research. After all, it is not too hard to identify a fundamentally strong company and allot a certain weight of one’s portfolio to the same. However, the biggest problem arises in answering question (c) i.e. when to buy. People find it very difficult to know exactly when to buy a particular stock in order to maximize their returns. They end up buying good stocks at peaks and eventually get annoyed on seeing red on their screens, panic, and sell off at a loss only to see the same company shoot up in the next few weeks or months. Sometimes, if they get lucky in buying at the right time, they end up waiting too long before encashing on the profits and end up with a measly return. In the end, it becomes all about greed and fear, the two biggest emotional hurdles that prevent an investor from reaching his/her desired returns.
What’s important is to have a non-emotional, structured approach towards answering each of the four main questions. This is something that Tepper looked to answer when he was in the process of his research, seeking a solution to the common investors’ problems.
The Story Behind The “Invest & Forget” Idea
In 2005, a close friend of Leon Tepper developed a software that could translate sound waves made by a person’s voice into cyclical modules. The purpose of the software was to illustrate the difference between correct and incorrect voicing of sounds and words. It became a major breakthrough in speech therapy and was immediately adopted by large corporates for the purpose accent reduction among their personnel spread across the globe.
When Leon Tepper heard about the functionality of this software, his first immediate thought was if the same algorithms could be used on other types of data, more specifically, the stock market. His basic idea was to use the algorithm to determine market cycles in order to identify the right timing for investing in a particular stock and also for exiting any given investment at the right time in order to maximize the returns.
In the end, just the algorithms alone were not enough as the calendar events which drive the price of any stock in cycles varied from company to company. For example, the point of time when Microsoft’s price would hit its bottom in a given cycle would be drastically different from the point when Netflix would hit its bottom and generate a buy signal. The macro-economic situation was also critical in understanding the cycle of the economy. Furthermore, it was important to integrate important metrics such as moving averages, trendlines, MACD, ADX, and Stochastic in order to evaluate the movement of price of any given stock and provide a three-dimensional picture of historic price changes, trends, and momentum. Tepper worked for three continuous years on incorporating all these characteristics into the original algorithms in order to find market-driving cyclical occurrences and combine multiple cycles of varying frequencies into a single turning point indicator.
The final “Invest & Forget” system created by him analyzes more than 6,000 data points to define where a certain stock is in its current profit cycle. It matches two critical approaches i.e. value investing and momentum investing in order to determine the perfect investment timing for high-potential scripts.
Why Is The “Invest & Forget” Service So Exclusive Even Today?
In 2014, Leon Tepper was approached by a group of big-time option traders seeking a practical application of the newly built model in a day-to-day scenario. These traders were used to manually calculate market cycles based on the teachings of J. M. Hurst and they managed to achieve phenomenal success through the new “Invest & Forget” model. Not only was the model back tested multiple times in many different scenarios (including six-sigma situations), but it was successful in providing triple-digit ROI. Seeing that the model had been highly exclusive for a privileged few, Tepper launched it in the form of a service to average retail investors through his platform, TeppersList.com. Some of its amazing success stories with multibagger returns include Facebook, SolarEdge, Amazon, Digital Turbine, and Axsome Therapeutics.
Key Takeaways – Why “Invest & Forget” Subscription Is A Must-Have Today
It is not easy for investors, even active ones, to generate a triple-digit return on a consistent basis. Markets are hard to predict and even after dedicating twenty-four hours a day to investment management along with the use of the most advanced software, people still fail to beat the S&P 500 largely because of two reasons – greed and fear. In such a scenario, one has to acknowledge the vast benefits of a strong, structured model like the “Invest & Forget” with proven capabilities through back-testing as well as day-to-day use. TepperList does all the heavy lifting, and for just $149 per month, it is available and is the ONLY report that investors need today in order to fully maximize their returns.
