Tango5

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Tango5 ETF Investing MethodbyDon WilsonMay
20, 2008www.donsfunds.com
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Tango5at www.donsfunds.com

• A fully developed and documented mutual fund
  trading system
• When to buy
• What to buy
• How to manage your holdings
• When to sell
• How to manage your money (equity Curve)
• How to track your trading history
• The software pre-packaged to run the system

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How Does it Perform Tango5 Back Test Example

• Backtest Results from the Amibroker Custom
  Backtester.
• All FT data, 15 years of history.
• High Risk Portfolio 22.72 ann, 13.56 mdd, win
  rate 73, holding 4 positions, 8 trailing stop
• Mid Risk Portfolio 19.77 ann, 10.87 mdd, win
  rate 68, holding 4 positions, 6 trailing stop
• Low Risk Portfolio 16.49 ann, 7.43 mdd, win
  rate 64, holding 4 positions, 3 trailing stop
• Note Back testing is a simulation of the past.
  It is imperfectBack testing is an
  approximation of what might happen in the future

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Backtest Example Tango5Bear Market Years
Statistics Charts Trades Formula Settings
Symbols

• Backtest Results from the Amibroker Custom
  Backtester
• Getting in out of the market at exactly the
  wrong time
• FT data starting 03/21/2000 10/07/2002, 2 1/2
  years bear market
• High Risk 9.76 ann, 8.30 mdd, win rate 80,
  holding 4 positions
• Mid Risk 11.29 ann, 6.77 mdd, win rate 75,
  holding 4 positions
• Low Risk 10.53 ann, 3.21 mdd, win rate 70,
  holding 4 positions

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Ranking Explained
RSI/Stochastic RSI / 2 Stochastic /
2 NCAlpha Alpha Ulcer Index the negative
portion of Standard Deviation Ranking
RSI/Stochastic NCAlpha Ulcer Index Absolute
numbers are then weighted for Rank calculation
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Note this table repeated For Mid Low Risk
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Note this table repeated For Mid Low Risk
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Amibroker MRI ChartsManaged Risk
Investing (25 custom charts)
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Tango5 ruttr Indicators - Russell2000
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Tango5 rutvol Buy Indicators Russell2000
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Tango5 Dominant Market Indicators-OTC/NY
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Tango5 Holdings DrawDownFT File
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Tango5 Sample Portfolio Equity Chart
vs. SP 500 Composite
Tango5 Sample Portfolio (black)
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Thats the Tango5 Output File Package

• Market timing MRI (Managed Risk Investing)
• Fund Screening Ranking
• Fund Holdings Management
• Portfolio Management (Trade Portfolio.ini)

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Wrap up - Risk When Investing

• You cant control the Market Action
• You can control RISK
• Tango strongly oriented towards controlling
  RISKfrom Market Timingfrom Fund Risk
  Levelsfrom Fund Selectionfrom Buy Sell Rules
• Its all about controlling RISK
• Tango puts the odds on YOUR SIDE------- If you
  follow the rules

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Reference Listing

• www.donsfunds.com
• Mean Markets Lizard Brains by Terry Burnham
• Stock Cycles by Michael A. Alexander
• How We Got Here by Andy Kessler
• Unexpected Returns Understanding Secular Stock
  Market Cycles by Ed Esterling
• The (MIS) Behavior of Markets by Benoit
  Mandelbrot Richard L. Hudson
• Predicting the Markets of Tomorrow by James P
  OShaughnessy