The Brockmann Method states that you should buy the stocks in the Buy Zone (top 10 ranked stocks) and then sell only when the stock passes into the Avoid Zone (26+ ranked stocks). Between the Buy Zone and the Avoid Zone is the Don’t Buy More Zone. This is a kind of buffer or damper on the natural volatility in the changes in Zones from one day to the next.
As it stands, in a typical year the Brockmann Method might require ~ 25-30 trades. Roughly once every two weeks or so. Manageable for most retail investors.
Besides, if users were to sell a stock whenever it falls outside of the Buy Zone, the frequency of trading greatly increases with no appreciable gain in results. So, the Don’t Buy More Zone offers a pause space that simplifies the user experience.
Comparing BeyondETFs Basic vs BeyondETFs Pro – Which One is Right for You?
Both the BeyondETFs and BeyondETFs Pro offerings include a 7-day free trial, push notifications telling subscribers what to Buy and when to Sell. Both products include curated News from Yahoo! Finance, on each of the stocks in the Index. Both products offer subscriptions with monthly and annual renewal options at different price points (price varies around the world).
Both products are available for iOS and Android, and for iPad.
Only the BeyondETFs Pro includes a personalized Scorecard and personalized charts comparing your daily performance versus the Index.
So, if you want just to know what to buy and when to sell, with access to news, BeyondETFs is the product for you.
On the other hand, if you want to know what to buy and when to sell, want to see your personal Scorecard calculated up to the last five minutes comparing your holdings with the Index, with charts, analysis and stock news, BeyondETFs Pro is a more feature-rich solution.
Either way, you will have the future of investing in your pocket.
How Does A Subscriber Discover That a Stock Has Fallen Into the Avoid Zone?
There are two basic ways.
Once a day, Brockmann & Company calculates the Zone Changes report. This is processed and distributed to all users. As part of that distribution process, we send a push notification to any user owning a stock in the Avoid Zone, explaining that it should be sold.
If notifications are silenced, or missed, there is a special presentation in the app’s Scorecard or Main view. Stocks that are in the Avoid Zone are flagged for immediate attention, whenever the subscriber opens the app.
How to Get Some Cash From an Investment Account With BeyondETFs Pro?
Here’s the user scenario: I have a sudden bill payment required, say an opportunity to purchase land, and need cash from my investment portfolio, which happens to be following the Brockmann Method and BeyondETFs Pro. How should one get the cash together?
Let us consider these options:
- Sell the lowest ranked stocks to meet your cash requirement?
- Take profits from the highest ranked stocks to meet your cash requirement?
- Take proportional cash from each investment to meet the cash requirement?
Sell the lowest ranked stocks to meet your cash requirement?
Pros: Selling low-ranked stocks can be a practical approach to raise cash. These stocks may have lower growth potential (price momentum) than the others, so selling them could streamline the portfolio, keeping only the highest (expected)-performing investments. With BeyondETFs Pro’s rankings, users have a clear guide on which stocks might align less with their financial goals, making these decisions easier.
Cons: Selling the lowest-ranked stocks increases the diversification risk in your portfolio. How much risk you are willing to handle is completely in your hands. The Brockmann Method leaves exactly 10 stocks in the Buy zone, since biology taught us the number of fingers on our hands. This approach will also likely increase the volatility in your day-to-day results. Some days big (paper) wins. Other days, big (paper) losses.
Peter likes this approach since it keeps the high growth engines growing. When he gets new cash to add to the portfolio, he often invests in the next highest Buy zone stock that he doesn’t already own.
Take profits from the highest ranked stocks to meet your cash requirement?
Pros: Selling high-ranked stocks that have appreciated can be a straightforward way to realize gains and meet cash needs without liquidating weaker assets. Selling profitable stocks allows an investor to “lock in” earnings from positions that may not continue their upward trend, ensuring gains are realized rather than speculative. With BeyondETFs Pro’s insights, users can identify stocks that are expected to be high performers, making a sale more calculated.
Cons: Taking profits from high-ranked stocks could disrupt a portfolio’s strong performers, reducing future TOTAL earning potential if these stocks continue to appreciate. Furthermore, selling high-ranking stocks could trigger capital gains taxes, potentially reducing the overall profitability of the portfolio.
Take proportional cash from each investment to meet the cash requirement?
Pros: Selling a proportional amount from each investment allows you to preserve the overall composition and diversification of the portfolio. This strategy reduces the risk of overexposure to lower-ranked or higher-ranked stocks by evenly distributing the sale across all holdings. It also reduces the potential tax impact that could come from focusing on highly appreciated assets, and spreads any losses or gains more uniformly. This steady approach can maintain alignment with long-term investment goals while addressing immediate cash needs.
Cons: However, this strategy might result in selling some of the portfolio’s strongest performers, potentially the real $ gains of future growth. Additionally, taking a proportion from every stock may involve selling shares in low-ranked stocks that aren’t performing well, potentially realizing losses. While balanced, this approach lacks the agility of focusing on either high-profit or low-ranking stocks, potentially making it less efficient in a rapidly changing market.
You are the manager of your self-directed fund, so use the strategy that suits your risk and investing style. When Peter needs cash, he sells some or all of the lowest ranked stocks. When Peter adds cash, he buys more of the leaders if he has 10, or he buys the Buy zone members that he doesn’t already own, so as to own 10. It’s up to you, since you’re in charge.
BeyondETFs Pro gives you the insights so you can easily determine which option is best for you.
What is the Brockmann Method?
It’s an investing approach that calculates the price momentum of the stocks of the S&P 100, ranks and recommends the highest-performing stocks within the S&P 100. Every evening, the app shows which stocks to buy, which to apply don’t buy more rules and which to avoid (exit), based on ranking of the price momentum (relative strength) of the stocks.
Learn more about The Brockmann Method.
How Do I Know That This Works?
The Brockmann Method has been live-tested since 2017, when I put my own retirement plan at stake. Great results. We compare performance of the Brockmann Method to the S&P 100 in the nearby performance graph. We believe in transparency, and have backtested to 2007.
Can I See Past Performance Before I subscribe?
Yes — the nearby graph shows how a $100,000 investment using the Brockmann Method compares to the S&P 100 from any point since 2007. Quite the track record!
Do I Need To Check The App Every Day?
No. Most users check once per week or so — even though new guidance posts daily, complete with push notifications if any sales action is necessary at the next trading day. There are some confidence-building niceties when the Scorecard shows a positive result and a larger result than the Index. (Remember, that although our goal is to beat the Index, we are able to do so over time, not all the time).
Don’t delay though, when you get the push notifications…
Can I Use The App If I Already Own Stock?
Yes. Many users use BeyondETFs Pro to rebalance their portfolio or decide what to hold and what to sell. The power of this philosophy and the Brockmann Method is flexible enough to fit just about anybody’s personal goals and needs.
What If I’m Not a Professional Investor?
BeyondETFs Pro is designed for self-directed investors. No jargon, no overwhelm — just clear, day-to-day direction.
Is This ‘Financial Advice?’
No. BeyondETFs Pro is an educational service showing how the Brockmann Method performs and how it would allocate capital. It’s up to you whether and how to act on the information presented.
What Does a Subscription Entail?
Both Basic and Pro subscribers get daily signals, individual stock picks, Yahoo! Finance curated news, Founders’ Chat (send private chat messages to Wilf and Peter Brockmann) and mobile-first updates through the app.
Only the Pro subscribers get the Scorecard, charts and email summaries with approximate details of each sell transaction.
It can only be renewed and or cancelled in your respective App Store – Apple App Store or the Google Play Store.
Can I Cancel The Subscription?
Yes. No lock-ins or penalties. You control your subscription via the user-specific controls of the Apple App Store or Google Play Store. Subscriptions are pre-paid. Typically, cancellation means that the current service will continue until the subscription anniversary, and then no longer work. Refunds are not generally available, and if so, only from The Apple App Store and Google Play Store.
How Is This Different From ETFs or Index Funds?
BeyondETFs avoids broad diversification and focuses on momentum. That means fewer positions, clearer signals, and (a very high) potential to outperform the index.
Most Index Funds have some fraction of each of the stocks of the Index. That is diversification taken to somewhat extreme limits. We believe it to be too extreme.
Because we have a method for identifying those stocks in the Index with the greatest propensity to increase in price (Price Momentum) and rank order them by their relative strength, subscribers are well positioned to benefit faster and at a higher growth rate than the Index.
BeyondETFs Pro subscribers see the comparison with the Index every day.
How Long Should I Expect to Hold a Stock?
The Brockmann Method updates daily and through the traversing of your purchases over time identifies whenever a stock you own is in the Avoid Zone, which is generates the trigger to sell — so you’re always acting on current information. This could be as short as 1 day (not very often) or years – depending on the stock, the circumstances and especially its relative strength.
For example, Disney’s acquisition of certain assets of Fox in 2019 was such a circumstance – FOX was in the Buy Zone for fifteen months while the acquisition sought shareholder and federal approval.