Unlike the popular buy-and-hold strategy, you would have substantially appreciated your investment capital during the millennium bear market by employing purely empirical market timing. As the models' performance demonstrates, Marketpolygraph has generated exceptional investment performance in every single year since 1999.

All historical performance results reflect the following:

• Marketpolygraph research more than pays for itself—typically well within the first quarter of membership: private investor monthly subscription fees and discount trading commissions are included in all performance calculations i.e. understating returns by at least 2-3 percentage points.
• Dividend and savings interest income (where applicable) are excluded from performance data calculations.
• Transactions for QQQQ, IWM and SPY are all executed on the same day a given Marketpolygraph QQQQ research notification is issued.
• Prior to Marketpolygraph's first live call in August 2004, average intraday share pricing is employed in order to realistically allow for delays in order execution: in addition to initial buys or shorts executed at the average intraday price, any given long position is not exited at the top of the day's trading range, and any given short is not covered at the bottom of the day's trading range.
• ETF transaction size = 1000 shares.
• As an example, an analysis of reinvested trading profits is included in the second and third tables below.
• As found in the third table, the QQQQ model is assessed for performance when 150 and 300 shares constitute the initial allocation of trading shares.
• Neither buying/shorting on margin nor options trading is employed at anytime in determining performance results. Transactions that exceed the specified limit (i.e. 1000 shares in the first two tables and 150 and 300 shares per the last table) are excluded from the performance review as this would otherwise overstate our performance results.

Historical Performance

Historical ETF Performance Returns
Year	QQQQ	IWM	SPY	Closed	Long	Cash
1999	82.1%*	N/A	15.7%*	4	4	21
2000	116.1%	46.1%*	26.3%	9	5	9
2001	91.7%	66.0%	50.3%	4	2	6
2002	61.2%	37.8%	28.3%	5	3	7
2003	41.3%	63.1%	33.8%	5	4	5
2004	55.0%	50.9%	28.6%	13	7	7
2005	19.5%	17.1%	15.7%	10	6	16
2006	22.0%	7.8%	3.6%	10	6	9
2007	31.8%	4.1%	8.3%	7	5	13

• A clear majority of trades have been issued as long side recommendations.
• At approximately 5 weeks in duration, 2003 saw the fewest reversions to cash.
• Although unstated, 2005 saw a single trading loss of 6.31%—over double the historical average.

Example A: 2004 Performance with 1000 Shares

• Since 1999, our QQQQ ETF model has realized an average annual rate of return of 60% on an average yearly transactional base that has yet to exceed 13 closed trades.
• Winning trades accuracy since 1999 › 89%
• Probability of being invested in the market at any given time › 80%

ETF Performance Comparison
Fixed trading amount	Reinvested profits	Fixed trading amount	Reinvested profits	Fixed trading amount	Reinvested profits
QQQQ		IWM		SPY
YTD Trading Profit ($USD)
$20,064	$26,125	$57,014	$69,748	$31,764	$35,484
YTD % Return (ROI)
55%	72%	51%	62%	29%	32%

Example B: 2004 Performance with 150 and 300 QQQQ Shares

QQQQ Performance
	Fixed trading amount	Reinvested profits	Fixed trading amount	Reinvested profits
	YTD Trading Profit ($USD)		YTD % Return (ROI)
150 Shares	$2,002	$2,507	37%	46%
300 Shares	$5,189	$6,675	47%	61%

Once again, both the ROI and Net Profit figures above are fully cost-adjusted—they include all discount brokerage commissions** and all Marketpolygraph monthly private investor fees (which may be significantly less than many banks' trading commissions).

*QQQ trading commenced on March 10, 1999 and our first research notification followed on April 21, 1999—applicable to QQQQ (new Nasdaq ticker effective December 1, 2004) and SPY models only, as IWM trading commenced on May 26, 2000 of the following year. The first general research notification applicable to all three ETF models followed very closely thereafter i.e. May 30, 2000.

**In the interest of maximizing your returns, please consider opening an on-line discount brokerage account with shorting capability, such as a TD AMERITRADE (U.S.A.) or TD Waterhouse (Canada) account, either of which would take a week or so to set up in order to best complement your Marketpolygraph membership. Depending on your present situation, you may consider initiating your Marketpolygraph membership in advance of your discount brokerage account if it proves more convenient to do so.