Triple Point combines three time-tested methodologies into a unified trading system. When Nobel Prize-winning valuation analysis aligns with fundamental quality metrics and technical chart patterns, you get signals with significantly higher probability of success.
Most trading systems rely on a single methodology—either fundamental analysis OR technical analysis. This creates blind spots. A stock might look cheap on fundamentals but have terrible price momentum. Or it might have great technicals but be fundamentally overvalued.
Triple Point solves this problem by requiring confirmation from three independent analysis methods before generating a signal. This dramatically reduces false signals and increases the probability of profitable trades.
Each methodology has proven itself independently over decades. Together, they create a powerful confluence of signals that institutional traders have used for generations.
Nobel Prize-Winning Valuation
The Cyclically Adjusted Price-to-Earnings ratio, developed by Nobel laureate Robert Shiller, compares current stock prices to average inflation-adjusted earnings over the past 10 years.
When CAPE is significantly below historical averages, stocks are typically undervalued and poised for above-average returns. When CAPE is elevated, expected returns tend to be lower.
9-Point Fundamental Analysis
Developed by Stanford professor Joseph Piotroski, the F-Score is a discrete score from 0-9 that identifies financially healthy value stocks using nine fundamental criteria.
Each criterion scores 1 (pass) or 0 (fail). A total score of 8-9 indicates exceptional financial health. Scores below 3 indicate potential financial distress.
150 Years of Technical Wisdom
Point & Figure charts, dating back to the 1880s, filter out time and focus purely on price movements, revealing supply and demand dynamics through classic patterns.
Unlike traditional charts, P&F only records significant price changes. X columns represent rising prices, O columns represent falling prices. Breakouts above resistance or below support generate signals.
Our research revealed a critical insight: the original signals are contrarian—they buy when prices fall. We've added momentum confirmation to avoid catching falling knives.
CAPE and F-Score are value signals—when prices fall, P/E ratios drop, and these indicators say "buy the dip." In a sustained bear market, this means buying stocks that keep falling.
SPY vs 200-day Moving Average
Trend + Momentum Confirmation
Determines if the stock is undervalued or overvalued relative to historical earnings
Confirms the company has strong fundamentals and isn't a "value trap"
Validates price action with chart pattern recognition
Generated when CAPE indicates undervaluation, F-Score ≥ 7, and P&F shows bullish breakout pattern
Generated when CAPE indicates overvaluation, F-Score ≤ 3, and P&F shows bearish breakdown pattern
The Triple Point strategy has been backtested using historical market data across multiple market cycles. The following results are showing how the strategy would have performed—not actual trading results.
Important Disclaimer: The performance figures shown above are based on hypothetical backtesting using historical data. They do NOT represent actual trading results. Past performance does not guarantee future results. Backtested results have inherent limitations: they are designed with the benefit of hindsight, do not reflect actual slippage or execution costs, and cannot account for the impact of economic and market factors on decision-making. Actual results may differ materially.
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