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  PFM - Potomac Fund Management
about us About us :
Overview
The Potomac Way
How it Works
FAQ
How it works

How Potomac’s Plan can beat the market long term even when we don’t gain as much during market advances.


Example-$100,000 Investment

It’s all in the Numbers! The Math. Here’s How It Works.

Goals
Stock Market
Potomac
Capture on average 80% of the gain during market advances Value of investment in stock market if increase was 100% would be $200,000 Potomac captures 80% of market rise account value would be $180,000
Limit losses to no more than 20% to 50% of stock market decline Value of investment if market declined by 50% (50% of $200,000 is $100,000 decline) new value would be $100,000 Potomac limits losses to 50% of 50%, i.e. 25% (25% of $180,000 is a $45,000 decline) new value would be $135,000
Grow investment better than buy and hold Final Account Value $100,000 Final Account Value $135,000
 

In the above example, if our plan were successful, we would have a gain of $35,000 or 35% vs. 0% for the market’s break-even results over the entire period.

 
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