The factors that led to the development and on-going application of the trading discipline are commonly used and universally accepted indicators. The analysis and computation of the indicators and the relationships between them is what makes the discipline unique. Mutual funds are used to facilitate trading for 3 basic reasons:

1) The fee structure is such that it is less expensive than using index futures, ETFs, options or other derivatives.

2) Each investor has an individual account held at the mutual fund company. The manager has only the authority to initiate trades, and charges quarterly fees. The investor maintains all other control.

3) The funds used were developed with the active manager in mind. Most funds now prohibit frequent trading due to abuses in the past. Regulatory concerns about frequent trading in the Rydex funds are not a concern as they allow daily trading.

This investment discipline should be considered a long-term investment strategy as the manager expects that superior returns will be achieved over time, but not without some bumps in the road.