Our Service

The TradeGuru service offers active investors a simple and effective approach to capturing the powerful advances which are characteristic of leading stocks. Our GuruFolios are automatic 10-stock portfolios you rebalance once every 4 weeks. Following the TradeGuru System is therefore very easy and the rewards can be quite remarkable.

 Background
There are thousands of stock-picking strategies based on anything from astrology, exploiting short-term imbalances, fundamental analysis, spotting breakouts or overbought/oversold situations, to throwing darts. We don't advocate any of those. Our founders, Frank Minssieux and Dr. Serge Dacic, are long-term students of the markets and computer scientists (see "About Us" page for more details on our principals) and they also have a track record of devising successful trading models. For example, they pioneered the innovative Trend Timing index investing method and their first service, TimingCube, is a well respected leader in this field.

Whereas TimingCube relies on technical analysis to time the broad market using index-based ETFs and mutual funds, TradeGuru GuruFolios are invested at all times and are made of individual stocks selected with fundamental analysis.

 Investor profile
Our typical subscribers are not the long-term buy and hold type of investors, and they do not have the patience to sit on the same positions for months or years to get results. They want action but do not have the time or desire to spend their days studying charts and trading. Using our service, they set and rebalance a portfolio of stocks once every 4 weeks. And for those who do not have the time or inclination to trade themselves, MARKETTREND Advisors offers TradeGuru money management.

There are no prerequisites or particular experience requirements, and no complicated methodology to learn. Yet the returns the Gurufolios have generated are very spectacular. Because of this combination of simplicity and outperformance, we believe that the GuruFolios approach belongs to any investor's portfolio.
You could start with as little as a few thousands of dollars but for diversification reasons (and to keep costs under control) typical investors allocate $50,000 or more to the System. Your money can be in regular accounts or any qualified retirement accounts that allow trading of individual stocks. Thanks to the inherently limited downside risk and the fact that funds are not tied up for long periods of time, the TradeGuru System is well suited for managing portions of a retiree's egg nest.

 Our System
The selection of our GuruFolio stocks is driven by our proprietary System for which we do not disclose the details. Our System exclusively looks at historical fundamental data to select the stocks we recommend. It performs top down company selection based on valuation and leadership fundamentals such as earnings growth.

GuruFolios consist of carefully selected baskets of 10 stocks which are meant to be monitored and rebalanced only once every 4 weeks. Rebalancing consists of trading up your account to match the then current collection of stocks in the GuruFolio by selling those that are no longer listed and replacing them with the new ones. On average, 4 out of 10 stocks are new each 4-week period. With GuruFolios we are always fully invested with a constant number of positions, and we monitor and trade on a known fixed schedule, once every 4 weeks.

Our "Results" page shows the returns for two sample 10-stock Folio A and Folio B portfolios. Each portfolio was started on January 4, 2002 and rebalanced every subsequent 4-week period. Returns for Folio A are live since January 2006 and backtested before then. Folio B was also introduced in January 2006 and was relaunched on December 1, 2008 using an updated stock selection algorithm. Returns for Folio B are live since that date and backtested before then.

Our Broad Market Gauge will note when the market is unhealthy and gains less likely to occur through both the color of the Gauge and the note underneath.

TradeGuru publishes a short Weekly Commentary after the close of the market on Fridays. This commentary is posted on our Web site and also sent to you by e-mail.

 Our stock selections
Our stock recommendations are companies listed on the AMEX, NASDAQ or NYSE stock exchanges. From the vast universe of stocks trading on these major U.S. exchanges we apply our stringent requirements to narrow the field to the few candidates that have the very best prospects for significant short-term price advances. Most importantly, we require our candidate stock picks to be the cream of the crop. There may well be many undiscovered gems out there with the potential for great future earnings and stock appreciation, but we do not have time to wait for the market to discover them. To make our short list, a stock must have demonstrated outstanding leadership characteristics such as top earnings growth as well as leading return on equity for their shareholders.

We begin with stocks with share prices over $5 and market capitalizations of at least $200M for sufficient liquidity. Beyond that the fundamental criteria we apply seek to identify good profitable businesses which are growing and offer good value, a company profile we can summarize as growth at a reasonable price (GARP). Folios A and B, by offering a slightly different bias can provide subscribers an opportunity to select a category they favor more. In a nutshell, Folio A stocks are screened more for their growth and momentum attributes, while Folio B stocks tend to be especially good values. A rare but possible occurrence is when a stock is included in both the A and the B Folios, which can happen when a stock uniquely combines leading momentum with top value.

In order to allow subscribers to start implementing their own portfolio at any time, the GuruFolios are updated daily to insure they, at all times, represent the 10 best stocks in their category. The current selection of GuruFolio stocks is available on the "GuruFolios" page. Once started, investors only have to rebalance their stocks once every 4 weeks and therefore do not need to check the current GuruFolio stock selections on a daily basis. Very often, a stock will disappear from the current list only to be selected again a few days later. This is simply due to to the fact that our screening process has to select exactly 10 stocks per GuruFolio on any given day. When a stock barely makes the cut, it can easily move in and out of the daily listing. This is completely normal and does not indicate that a stock that no longer appears in the daily listing has suddenly turned bad and should be sold immediately: once you buy a GuruFolio stock, you should keep it for 4 weeks, even if it disappears from the daily listing a few days after you bought it.

Our historical numbers show an average periodic turnover of about 40%, meaning that about 4 stocks out of 10 are new every 4 weeks.

 GuruFolios Implementation
Implementation with GuruFolios consists of deciding how much money you want to invest with the strategy and how many individual stocks you will hold at all times. Frequently, subscribers will simply buy the 10 stocks in Folio A or B, or all 20 for large accounts. GuruFolios are like automatic portfolios. You establish your portfolio initially from the listed stocks on the "GuruFolios" page and you forget about them. No e-mails, no daily chores. Every four weeks you rebalance your portfolio to reflect the then current stocks on the "GuruFolios" page. Sell the positions that are no longer on the list and buy the new ones. That's it.

To summarize, here are the step-by-step instructions to follow in order to implement the GuruFolio System:

  1. Log in to the TradeGuru Web site and go to the "GuruFolios" page
  2. Create your own portfolio by choosing stocks in the current Folio A and Folio B listings. Between the 2 GuruFolios, you can select up to 20 stocks. We provide the industry sector for each stock so that you can build a diversified portfolio.
  3. Buy and hold the selected stocks for 4 weeks
  4. When the 4-week holding period is up, log in to the TradeGuru Web site again and go to the "GuruFolios" page
  5. Rebalance your portfolio by selling the stocks that are no longer part of the current list and replace them with new Folio stocks.
  6. Repeat step 4 and 5 every subsequent 4-week period

Additional implementation notes:

  • Since the returns vary from trade to trade, over time your allocated amounts (e.g. $10,000 per position) will grow unevenly and from time to time you may want to do some housecleaning and rebalance them
  • An alternative to buying stocks that some investors prefer are options. For convenience, we flag the GuruFolio stocks that are optionable in the latest daily listings shown on our "GuruFolios" page
  • Another piece of information we provide about our stocks is their industry sector. As explained in the "Do you select industry sectors?" FAQ, at times our System will tend to naturally favor the best companies in areas that are outperforming the rest of the market. Strategies vary between going with the flow and letting the sector allocations ebb and flow freely and keeping an even sector distribution by cherry picking which of our stock recommendations you follow.
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