FREQUENTLY ASKED QUESTIONS ABOUT THE PROCESS
What happens when the buy/sell is close, but misses the
signal by a few points?
With the Madison timing signals, we need to see the Madison
score move to extremes before committing our capital.
Through years of fine-tuning and development, we have
determined that a score of -20.00 on our unique scoring
system is where we want to start initiating long positions.
Our market philosophy is based entirely on discipline and
patience. We want to take on market risk when we know the
odds of success are greatly skewed in our favor. Our
ultimate goal is to pinpoint 4 to 6 times a year when you
want to be a buyer or seller of major indexes, sectors,
groups and ETFs. An added benefit of our process is that you
may not only outperform the market, but according to our
current track record you will probably have achieved that
gain with significantly less time spent exposed to market
risk and really ramp exposure when those unique buy
opportunities present themselves.
Our timing signals have been in practice here for almost 3
years and we have found that sticking to the precise scoring
system and trigger points insures the highest probability of
success with the least amount of risk. It should be noted
that our system is dynamic and we have made several
improvements to the systems as time moves forward. A static
model that does not recognize the changes to the market is
doomed to failure.
Why does the number move from day to day?
The system is dynamic, taking into account each day's market
activity. Each day we are adding in the most recent trading
day and dropping a day "off the back" So each day there is a
new trigger point. It moves up or down according to the
system's dynamic inputs. The exact price points that dictate
the buy and sell zones represent our view of the highest
probability for winning trades.
What if the Madison buy zone levels get hit intraday -- does
this put us in the buy zone?
The answer is no-- a buy signal is triggered if the specific
level is greater than +20 or less than -20 at the end of the
If the buy zone is hit intra-day, we will point it out in
the following day's commentary. However, the best signals
are always activated on an end of day close. As we develop
our new website and move beyond just being inside of the
morning briefing expect to see the creation of flash alerts.
Any downturn that takes a turn for the worse always has the
distinct possibility that our score could go to a -35.
Usually this is triggered by a geopolitical event, or
washout of negative sentiment. This occurs on average about
once a year, but there have been several years where the -35
As we enter the buy zone, we will be diligent in watching
our intraday indicators to confirm that a bottom is forming,
and whether the likelihood of a -35 score is decreasing. If
such a scenario occurs, we will then suggest putting the
remainder of your capital to work in a more aggressive