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FLIPPING THE SWITCH FOR 67% PROFITSBy Adam O’Dell, Chief Investment Strategist, Dent Research

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FLIPPING THE SWITCH FOR 67% PROFITS

In front of you right now is the secret strategy to becoming a seven-figure trader.

To acquiring life-changing wealth.

To achieving true financial and personal freedom.

I call it my “Flip the Switch” market-timing strategy.

It’s the same strategy that produced a 67% return for my top-performing 10X Profits trading service in its first year of live trading. And it’s based on a little-known market “secret” that has worked for more than 100 years.

I backtested this strategy in 2006 (to analyze performance over the last 13-years), and the results were astounding. My “Flip-the-Switch” strategy returned a compounded 51% per year! That’s a total return of more than 20,398%%. It would have turned a $10,000 investment in 2006 into a whopping $2 million in 2019!

And that includes the 2008 market crash, when stocks dropped 58%!

That’s incredible, especially when you consider that passive buy-and-hold investing in the S&P 500 returned just 140% in the same time. If you’d followed mainstream advice and invested $10,000 in the S&P 500 in 2006, had the courage not to pull out at the worst of the 2008 crash, and held through 2019, you’d only have grown that money to $24,034!

10X Your Money During the 2008 Crash!

$120,000.00$110,000.00$100,000.00

$90,000.00$80,000.00$70,000.00$60,000.00$50,000.00$40,000.00$30,000.00$20,000.00$10,000.00

9/1/2005 9/1/2006 9/1/2007 9/1/2008 9/1/2009$-

10X Switch S&P 500

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$2 million versus $24,034?!

Yeah, it’s a no brainer.

And it was all done without stock-picking, complicated strategies, or options trading.

In this report, I’ll explain how that’s possible. By the time you’re done reading this, you’ll have in the palm of your hands the ability to consistently identify the major turning points in the market’s boom and bust cycles – and the psychological armor you need – so you can bank consistent, market-beating profits!

First, we…

ELIMINATE THE GUESSWORK

I designed my “Flip the Switch” market-timing strategy to answer one simple question: Is it a GOOD or BAD time to be invested in stocks?

That’s it!

If my model is forecasting a GOOD environment ahead, you buy risk assets like stocks, ETFs, junk bonds, and even leveraged investments that go double or triple long the market.

If my model is forecasting a BAD environment ahead, you buy defensive assets like cash, Treasurys, or super-charged long-volatility funds.

Quite simply, you’re either in RISK-ON or RISK-OFF mode.

You want to get as much of the GOOD from risk assets when the time is right, and when we expect trouble ahead, you want to avoid the BAD that risk assets subject us to.

But you can go one step further: When we expect trouble ahead, you can make money too!

Here’s how…

I run my proprietary model every day the market is open and it tells me that the market is in either one of four states at any given time...

1. Global Safe [good]2. U.S. Safe [good]3. ALL Safe [good]4. Risk-Off [bad]

Like I said, when my model is forecasting one of the three GOOD

GLOBAL CONDITIONS

U.S

. SEC

TOR

CON

DIT

ION

S

GOOD/GOOD GOOD/BAD

GOOD/BAD BAD/BAD

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environments ahead, you invest in risk-assets. It’s during such times that profits can be quite lucrative!

Look at this chart below of the S&P 500 ETF (SPY). It’s one of the most common and widely-traded “Risk-On” assets.

As you can see, between 2006 and 2018, SPY produced strong results when my model gave the “all clear” signal. In other words, it did well when markets were in those three GOOD environments – Global Safe, U.S. Safe, and All Safe. But it suffered badly when my model flashed “trouble ahead.”

So, my strategy calls for you to stay invested ONLY during the three GOOD environments, when returns are usually stronger and more certain.

Those following a buy-and-hope approach wouldn’t have been able to avoid the market’s negative 24% annualized losses, during the bad times… but that’s exactly what my market-timing strategy is designed to avoid!

And this success is not limited to just one market. My model also works on just about every other risk-on market, including these…

The Russell 2000…

When my model is flashing warning signs, small cap stocks really take a hit... but when my model gives the green light during the three GOOD environments, the results are extremely powerful.

Annualized Return (S&P 500)

20%

12%

18%14%

-24%

15%

10%

5%

0%

-5%

-10%

-15%

-20%

-25%

-30%

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The Tech-Heavy Nasdaq 100 (QQQ)…

Again, my model keeps you OUT of risk-on assets, like QQQ, when it is flashing “trouble ahead” and IN risk-on assets during the three GOOD environments.

ProShares Ultra QQQ (QLD), which is an ETF that goes double long the QQQ…

Annualized Return (Russell 2000)

30%

20% 21% 20%

-35%

20%

10%

0%

-10%

-20%

-30%

-40%

Annualized Return (QQQ)

40%

17%

33%

19%

-22%

30%

20%

10%

0%

-10%

-20%

-30%

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On leveraged assets, like QLD, my model is designed to make you fat, oversized profits during the GOOD times, and avoid big losses during the BAD times.

“FLIPPING THE SWITCH” FOR BIG PROFITS IN DOWN MARKETS…

On the flip side, my model shows how risk-off assets – otherwise known as “defensive assets” – perform strongly during the BAD times.

Annualized Return (QLD)

100%

35%

90%

40%

-39%

80%

40%

60%

20%

0%

-20%

-40%

-60%

Annualized Return (SH)

30%

-13%

-20%

-14%

24%25%

15%

20%

10%

5%

-5%

-10%

-15%

0%

-20%

-25%

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The chart on page 6 shows the historical performance of the ProShares Short S&P 500 Trust (SH), which is an inverse ETF designed to move in the opposite direction of the S&P 500.

My model not only keeps you safe during market downturns... it makes it possible to make big profits from them!

This is why we “flip the switch” back and forth between risk-on and risk-off assets rather than just buy, hold, and hope.

As I said earlier, this “Flip the Switch” strategy made 10X Profits subscribers a whopping 67% return in 2017, just by trading two ETFs. During that same period, the S&P 500 returned only 19%.

The two ETFs we currently use in my core model are the ProShares Ultra QQQ (NYSEArca: QLD) (risk-on) and the iPath S&P 500 VIX ST Futures ETN (NYSEArca: VXX) (risk-off) – both shown in the charts above.

We switch between these two ETFs depending on whether my model recommends risk-on or risk-off positioning. And of course, I also share with 10X subscribers several other risk-on and risk-off ETFs they can consider, depending on their goals and volatility tolerance.

THE CORE LOGIC BEHIND FLIPPING THE SWITCH

The core logic behind this strategy goes all the way back to the early 1900s, when market pioneer Charles Dow noticed the relationship between the Industrial Average and the Railroad Average.

He realized that if both averages were moving higher together, the economy was strong. But, if one was moving higher, and the other wasn’t, the economy was on shaky ground. In other words, if there’s a large gap between the GOOD and BAD sectors of the economy, it’s likely we’ll see trouble ahead.

This still holds true today, more than 100 years later, even though technology stocks are more important than railroad stocks, these days.

Back in late 1999, tech stocks were returning 15% to 20% more per MONTH than out-of-favor sectors. Everyone thought that was the “new normal.” Looking back, we now know that the outperformance of tech stocks had gotten out of control and was unsustainable, but most folks got caught up in the euphoria and didn’t know how to spot the warning the divergence was sending. Many lost half of their life savings, if not more.

But today, using my “Flip the Switch” strategy, you’ll know as soon as I do when my model alerts me to any change in major trends like these. That way you can act fast to avoid big losses and capture big gains.

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My “Flip the Switch” market timing model looks at the levels of “togetherness” or “dividedness” for both the U.S. and global stock markets. Based on its determination of which one of the four states the market is in, we follow just two simple rules:

1. GO LONG RISK-OFF (defensive) assets during the bad/bad environment2. GO LONG RISK-ON assets during all other environments – good/good, good/bad,

and bad/good.

It’s that simple!

Our goal is NOT to waste time and energy looking for the next Amazon or hot, trendy play. Leave that next-to-impossible-challenge to Warren Buffett and any other fool who wants to work 80 to 100 hours a week!

Instead, use my simple “Flip the Switch” market-timing model to time the major waves of booms and busts in the market and capture most of the GOOD and avoid most of the BAD when investing.

To be clear: With this strategy, you’re ALWAYS in either one of two positions: RISK-ON or RISK-OFF.

THERE’S ONE CATCH…

Discipline will determine your degree of success more than the strategy itself.

This is universally true. All investors, implementing any strategy, must stay disciplined. A lack of discipline results in poor investment returns. Period.

Have you heard of Diana Nyad?

A few years ago, she became the first person to swim the 110 miles between Havana, Cuba and Key West, Florida. She was 64 years old at the time. And she did it without a shark tank!

Perhaps most impressive is that it was her fifth attempt at the feat! She had failed four times before, including once when she was a much-younger 29 year old. Yet that didn’t stop her from trying again, and again.

Just minutes before she began her successful attempt, someone on her support team reportedly whispered to her, “Find a way.”

What they meant by those encouraging words was, of course: “Find a way past the jellyfish stings and sharks. Find a way through the waves and currents. Find a way to ignore the pain, the fear. Find a way to dismiss your self-doubt. Find a way to persevere. Find a way to keep on keepin’ on! Find a way to make it to the goal line!”

In the same way, mental fortitude plays a significant role in the success of wealthy investors,

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like Buffett, Soros, and the like. Think about it…

Diana was physically tortured every minute of her 53-hour swim. Every stroke and kick… every jellyfish sting and shark sighting… subjected her to the same nagging voice we all hear when we’re in pain and afraid: “Just quit. The pain will stop.”

The ONLY thing that kept Diana Nyad from quitting was her mental fortitude… the psychological and emotional strength she mustered to say: “I’m NOT quitting!”

In the same way, we investors are psychologically and emotionally tortured much of the time (with physical effects, too). With every day that goes by, with every trading loss or down month, we hear that nagging voice telling us to just quit.

And the ONLY thing that separates successful and unsuccessful investors is mental fortitude… the psychological and emotional strength we must muster to say: “No! I’m NOT quitting!”

My “Flip the Switch” strategy is not for the faint of heart. It requires mental fortitude and disciplined action. The strategy is unconventionally powerful, but you won’t be successful with it unless you “find a way” to deal with the psychological and emotional pain you’ll naturally feel when things aren’t going your way. You’ve got to find a way to stick with it if you want to win in the end.

Here are some tips to help you with that.

5 TIPS TO MAKE THE MOST OF THIS “FLIP THE SWITCH” STRATEGY

First, there are two critical components to this “Flip the Switch” strategy:

1. Performance.2. Process.

If I’ve learned nothing else in my investing career, it’s this: focus on your process… performance will take care of itself, in the long run.

This is key to investing with systems. Performance is fickle and largely at luck’s mercy… in the short run. The strategy’s edge drives profitable performance… in the long run.

You can achieve profitable performance, in the long run, only if you can stick to your process – every single day – through thick and thin. To do this, you must understand the psychology oftaking a loss.

It’s psychologically painful to take a loss on any investment. That’s why most investors hold losing positions for far too long… for erroneous and purely psychological reasons. Following the “Flip the Switch” system helps overcome this because the rule is: When my model tells you to “flip the switch,” you MUST flip the switch!

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Don’t marry any one position. No one position will ever make or break you. It’s far more important that you stay married to the model… and, with discipline, make each and every trade as the model suggests.

You’ll take your share of losses. But over time, you’ll come out on top if you stick with the model.

Learn to take losses gracefully.

George Soros does it like a champ. In the legendary hedge-funder’s own words: “I’m only rich because I know when I’m wrong. I basically have survived by recognizing my mistakes.”

There are two ways to channel your own inner-Soros. First, admit to yourself that you will take losses. It’s a cost of doing business in the stock market – accept it!

Second, check your account balance infrequently – no more than once a month. This limits your temptation to act outside the bounds of the system.

Also, to enjoy success with my “Flip the Switch” strategy, you must embrace whipsaws.

Any systematic strategy that goes “long” and “short” will experience whipsaws from time to time. They’re a series of short-lived losing trades you suffer when a system “flip flops” its recommended position.

There’s really no way to avoid them, but the good news is that they work in your favor – not against you. Whipsaws cause more psychological discomfort than anything else.

Embrace the infamous “80/20 Rule.” That is, most of your cumulative profits from this strategy will come from a minority of trades. This can make systems investing about as boring as watching paint dry. But this is where discipline becomes critical.

If you don’t have the discipline to stick with it during these boring times, you won’t be prepared or positioned for the “firework” trades that inevitably come about when you least expect them.

Thirty-five percent of this strategy’s winning trades accounted for 80% of historical, cumulative profits. Missing just a few of those trades means you miss out on most of the system’s profit potential.

Finally, understand and accept drawdowns. While our profit source will never “dry up,” it will not, unfortunately, provide a steady and growing drip of cash money into your brokerage account. Over time, your account balance will grow… and face setbacks. Overall, the growth may feel “lumpy” at times. And you’ll spend a good deal of time between those growth spurts.

Said differently, you’ll spend time in drawdowns. That’s when your account balance today is smaller than it was yesterday.

Listen carefully now: It’s impossible to eliminate drawdowns. But you can do a few things to

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minimize them – both their severity and their duration. That’s what risk management is all about.

With my “Flip the Switch” Strategy, you’ll play both offense and defense.

Offense-only is a miserable strategy. Essentially, that’s exactly what buy-and-hold is. When the market corrects or pukes its brains out, all you can do is hold… hope… and pray. You don’t have a single defensive move to make. The result is large and long drawdowns. Many times, the drawdowns are so large… and last so long… that investors give up and bail out.

But by playing offense and defense, like you do with this “Flip the Switch” Strategy, you’ll still face drawdowns, but you’ll limit them the best you can.

There’s just one last thing to consider…

POSITION SIZING

This is a personal decision you need to make. No one should make it for you. But I would recommend that you start small. As you gain confidence with this strategy, you can “gear up” to your ideal risk/reward level.

It’s better to be too conservative than too aggressive.

And never risk more than you are willing to lose.

Wishing you amazing success with your new “Flip the Switch” Strategy.

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Adam O’Dell is the Chief Investment Strategist at Dent Research.

Around the office, he’s known as the math guy for his ability to analyze market data and identify major stock moves. It doesn’t hurt that he has a math and science background, having first attended medical school at West Virginia University before deciding to tackle the world of investing.

Back in 2011, he left a high-paying job consulting for some of the world’s wealthiest people to join the Dent Research team.

Co-founders Harry Dent and Rodney Johnson specifically brought him on-board to leverage his technical trading background… and to find ways to trade the markets that nobody else had thought of yet.

Since joining the team, he’s developed the highly successful options trading research service, Cycle 9 Alert. And 10X Profits, a strategy that's even easier to implement. It uses just two positions to gain risk-on and risk-off exposure.

Rich Investors Club819 North Charles St Baltimore, MD 21201 USA USA Toll Free Tel.: (888) 211-2215 Contact: richinvestorsclub.com/contactWebsite: richinvestorsclub.com

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