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DIY Financial Advisor: A Simple Solution to Build and Protect Your Wealth by David P. Foulke, Jack R. Vogel, Wesley R. Gray

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Appendix: Analysis Legend

The following table provides a definition of the words and symbols we use in the book.

Word/Symbol Description
DIY Do-It-Yourself
ROBUST 50 percent TMOM; 50 percent MA
TMOM Time series momentum
MA Simple moving average
S&P 500 Standard & Poor's 500 Total Return Index, the free-float, market-capitalization-weighted index including the effects of dividend reinvestment
CAGR Compound annual growth rate.
Standard Deviation Sample standard deviation (annualized by square root of 12)
Downside Deviation Sample standard deviation of all negative observations (annualized by square root of 12)
Sharpe Ratio Monthly return minus risk-free rate divided by standard deviation (annualized by square root of 12)
Sortino Ratio (MAR=5%) Monthly return minus minimum acceptable return (MAR/12) divided by downside deviation (annualized by square root of 12)
Worst Drawdown Worst peak-to-trough performance
Worst Month Return Worst monthly performance
Best Month Return Best monthly performance
Profitable Months Proportion of monthly performances that have a positive return

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