To demonstrate Automatic Investor's performance in the real world, we conducted an exhaustive study based on the four most followed major US indices, the Dow, Nasdaq, S&P100, and S&P500.

We started by hypothetically investing $10,000 in each stock contained in the associated index. In the case of the Dow 30, for example, we invested $10,000 in each of the 30 individual stocks that make up that index (for a total of $300,000).

We then used daily price updates for 5, 7 and 10 year periods and compared the results to the Buy and Hold strategy. Table I contains the study results.

All examples used Automatic Investor's DEFAULT model settings. No optimizations were done to increase the returns.

Keep in mind that the study used REAL-WORLD data. If you had placed $10,000 in each stock on the given dates and used Automatic Investor to manage your investments, you could have achieved these returns.

What's more, Automatic Investor obtained its results with LESS RISK than the Buy and Hold strategy. Buy and Holders were 100% at risk over the 5, 7 and 10 year periods -- that is, 100% of their money was in the market.

Automatic Investor users, however, were partly in equities and partly in risk-free cash throughout much of the period.

Therefore their exposure to the market was significantly less. This translates into less overall risk when compared to the Buy and Hold strategy where 100% of an investor's funds were always invested in the market and thus 100% at risk.

In essence, Automatic Investor provided significantly higher returns with much less risk!

Index	Period	Automatic Investor Return	Buy & Hold Return
Nasdaq 100	09/Oct/1992 to 09/Oct/2002	$9,529,465.53	$7,461,642.81
Nasdaq 100	09/Oct/1995 to 09/Oct/2002	$7,011,751.20	$3,518,499.40
Nasdaq 100	09/Oct/1997 to 09/Oct/2002	$4,288,926.61	$1,582,672.02
Dow 30	09/Oct/1992 to 09/Oct/2002	$1,115,775.6	$941,903.17
Dow 30	09/Oct/1995 to 09/Oct/2002	$656,395.66	$535,671.26
Dow 30	09/Oct/1997 to 09/Oct/2002	$327,458.20	$284,271.52
S&P 100	09/Oct/1992 to 09/Oct/2002	$4,314,491.33	$4,230,964.16
S&P 100	09/Oct/1995 to 09/Oct/2002	$2,789,269.03	$1,812,362.59
S&P 100	09/Oct/1997 to 09/Oct/2002	$1,323,067.25	$998,304.55
S&P 500	09/Oct/1992 to 09/Oct/2002	$20,292,516.61	$18,674,859.23
S&P 500	09/Oct/1995 to 09/Oct/2002	$13,518,133.75	$9,982,928.65
S&P 500	09/Oct/1997 to 09/Oct/2002	$7,778,478.04	$5,519,818.18

Automatic Investor also includes a powerful set of optimization tools that advanced investors can use to wring out even more profits. However the examples above simply used the built-in, out-of-the-box DEFAULT model settings.

STUDY DETAILS

The Historical Simulations were run under Automatic Investor version 2 Service Pack 1 using the DEFAULT model. NO optimization was performed to enhance the results.

When data did not exist for the entire testing period, the earliest available data were used.

The study assumed that all recommended trades were filled at the closing daily prices.

The study did NOT include interest earned on the cash reserve (i.e. the no-risk cash portion of the Automatic Investor strategy) nor did it include dividends, but it did take into account commissions for each trade. A fixed $10 per trade commission charge was assumed.

Tax considerations were ignored.

The four major indicies were selected because they are the most followed indicies in the world and many people currently invest in them.

Automatic Investor can achieve even higher returns if more volatile (i.e. riskier) stocks are selected.

For additional information about the risks involved with investing and investment software, please see our Terms and Conditions Disclaimer.

See the Automatic Investor Detailed Index Study report for complete details. The report is approximately 1.7MB and you'll need Acrobat Reader to view it.

DISCLAIMER

The study results listed in this report represent simulated computer results over past historical data, and not the results of an actual account. Hypothetical or simulated performance results have certain limitations.

Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.

Simulated programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Past performance does not guarantee future results. Current performance may be lower or higher than the performance stated.

Please read the Terms and Conditions before using any information contained in the study.