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DORSEY WRONG

"What if your tactical strategy... isn't?"


Point & figure relative strength sounds sophisticated. But sophisticated doesn't mean effective. Below is a data-driven analysis of Dorsey Wright's largest tactical equity funds vs. simply owning the S&P 500. All data from public filings. You be the judge.

C:\DORSEYWRONG\Performance.exe
File   Edit   View   Help
FundAUMExpense1Y Return3Y Ann.5Y Ann.
FV$3.68B0.89%+7.27%+11.51%+9.86%
PDP$1.2B0.62%+17.00%+6.50%+6.07%
DWAS$464M0.60%+6.08%+1.20%+5.80%
SPY$570B0.09%+25.00%+12.50%+14.42%
C:\> Every single Dorsey Wright fund underperformed the index it was supposed to beat._|
⚠️ Critical Warning
⚠️

OPPORTUNITY COST DETECTED

A $10,000,000 investment in PDP over 5 years grew to approximately $13,430,000.

The same $10,000,000 in SPY grew to $19,590,000.

$6,160,000 in missed gains.

C:\DORSEYWRONG\Risk_Analysis.doc — WordPad
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Risk Analysis: FV ETF vs S&P 500 (5-Year)

"More risk. Less reward. That's not a strategy. That's a fee."

Beta
1.25
SPY: 1.00
25% more risk
Sharpe Ratio
0.45
SPY: 1.41
3x worse
Std. Deviation
16.78%
SPY: 11.95%
40% more volatile
Alpha
-13.52
SPY: 0.00
Destroying value

Translation: FV takes on 25% more market risk than the S&P 500, swings 40% wider, and delivers a Sharpe ratio that is three times worse. The alpha of -13.52 means this fund is actively destroying value relative to the risk it takes. You could literally buy SPY and take a nap.

C:\DORSEYWRONG\methodology.ppt — PowerPoint Viewer

THE METHODOLOGY PROBLEM

Slide 1 of 3

How Point & Figure Relative Strength Works:

Step 1: P&F Chart

Filter out "noise" by only plotting price when it moves by a set box size. Sounds smart. Guarantees lag.

Step 2: Relative Strength

Layer momentum (already lagging) on top of P&F (also lagging). It's a lag sandwich.

Step 3: 3-Box Reversal

Require 3x the box size to confirm a reversal. By the time it signals, the move is over.

⚡ Market Moves🔍 Momentum Detects (Lag #1)📋 P&F Confirms (Lag #2)💀 Too Late

📉 FV (Focus 5) — Worst Drawdowns vs SPY:

COVID-19 Crash (2020)
FV Max Drawdown: -23.04%
SPY Max Drawdown: -21.57%

The "tactical" fund dropped more than the index it was supposed to protect against. So much for downside management.

2015-2016 Selloff
FV Max Drawdown: -21.85%
SPY Max Drawdown: -9.42%

FV fell more than twice as far as SPY. Their $3.68 billion flagship. More than double the damage.

2018-2019 Correction
FV: -18.62%
SPY: -12.13%

Once again, FV fell harder than the market it claims to tactically navigate.

Slower Recoveries, Every Time

Oct 2023: FV still at -14.30% while SPY at -8.43%

Apr 2025: FV at -16.81% while SPY at -12.49%

Deeper drawdowns AND slower recoveries. The worst of both worlds.

📉 PDP (DWA Momentum ETF) — Worst Drawdowns vs SPY:

COVID-19 Crash (2020)
PDP Max Drawdown: -21.82%
SPY Max Drawdown: -21.57%

The momentum strategy offered zero protection. Fell just as hard as a plain index fund. Why pay 7x the fees?

2022 Bear Market
PDP Max Drawdown: -30.35%
SPY Max Drawdown: -21.32%

PDP fell 43% farther than SPY. The "momentum" strategy got caught holding yesterday's winners as they collapsed.

Global Financial Crisis (2008-09)
PDP Max Drawdown: -55.31%
SPY Max Drawdown: -49.88%

PDP fell 5.4 percentage points farther than the S&P 500 during the worst crisis in modern history. So much for "tactical" defense.

The Pattern Is Clear

2022: PDP at -30.35% while SPY at -21.32%

2020: PDP at -21.82% while SPY at -21.57%

2009: PDP at -55.31% while SPY at -49.88%

In every major crash since inception, PDP matched or EXCEEDED the S&P 500's drawdown.

📉 DWAS (DWA SmallCap Momentum) — Worst Drawdowns vs SPY:

COVID-19 Crash (2020)
DWAS Max Drawdown: -27.68%
SPY Max Drawdown: -21.57%

DWAS crashed 28% harder than the S&P 500. Small-cap "momentum" amplified the pain instead of avoiding it.

2022 Bear Market
DWAS Max Drawdown: -30.09%
SPY Max Drawdown: -21.32%

DWAS fell 41% farther than SPY. The Dorsey Wright methodology failed to rotate out of declining small caps in time.

2015-2016 Selloff
DWAS Max Drawdown: -25.93%
SPY Max Drawdown: -9.42%

DWAS fell nearly 3x as far as SPY. While the market dipped, DWAS cratered.

2025 Tariff Selloff
DWAS Max Drawdown: -28.59%
SPY Max Drawdown: -12.49%

Even in the most recent downturn, DWAS fell more than double what SPY lost. The pattern never changes.

⏳ Waiting for Dorsey Wright sell signal...
Estimated time remaining: ∞    (The market already moved. Still waiting.)
📁 C:\DORSEYWRONG\Charts\ — 3 file(s)
Chart Wizard - Step 4 of 4 [C:\DORSEYWRONG\drawdown_chart.bmp]
Chart   Format   Tools   Window   Help
FV vs SPY — Drawdown from All-Time High (%)
0%-5%-10%-15%-20%-25%2014201520162017201820192020202120222023202420252026FVSPY (S&P 500)
■ Worst FV: -23.0% (2020-03)■ Worst SPY: -21.6% (2020-03)
Chart Wizard - Step 4 of 4 [C:\DORSEYWRONG\pdp_drawdown.bmp]
Chart   Format   Tools   Window   Help
PDP vs SPY — Drawdown from All-Time High (%)
0%-10%-20%-30%-40%-50%-60%2007200920112013201520172019202120232025PDPSPY (S&P 500)
■ Worst PDP: -55.3% (2009-03)■ Worst SPY: -49.9% (2009-03)
Chart Wizard - Step 4 of 4 [C:\DORSEYWRONG\dwas_drawdown.bmp]
Chart   Format   Tools   Window   Help
DWAS vs SPY — Drawdown from All-Time High (%)
0%-5%-10%-15%-20%-25%-30%-35%20122014201620182020202220242026DWASSPY (S&P 500)
■ Worst DWAS: -30.1% (2022-07)■ Worst SPY: -21.6% (2020-03)
⚠️ Chart Analysis Summary
📉

PATTERN DETECTED ACROSS ALL FUNDS

In every single major downturn, Dorsey Wright's "tactical" funds fell as much or more than the S&P 500. The red line is almost always below the blue line.

You're paying 7-10x more in fees for a strategy that amplifies losses instead of reducing them.

C:\DORSEYWRONG\costs.xls — Microsoft Excel
File   Edit   View   Insert   Format   Tools   Data   Window   Help
A: FundB: TurnoverC: SPY TurnoverD: MultipleE: Expense
1PIE204%3%68x0.90%
2DWAS186%3%62x0.60%
3DALI123%3%41x0.90%
4PIZ122%3%41x0.35%
5PDP109%3%36x0.62%
6FV60%3%20x0.89%
7SPY3%3%1x0.09%

=SUM(Frustration)   Result: You're paying 10x more in fees while they churn your portfolio 20-68x more than SPY. The fees are guaranteed. The returns are not.

DORSEYWRONG.SYS

A fatal error has occurred in the Dorsey Wright allocation system.

Investors have begun emergency exit procedures.

* FV net outflows (1yr) ......... -$536,870,000

* DWAS net outflows (1yr) ....... -$225,940,000

* PDP net outflows (5yr) ........ -$699,640,000

* Methodology confidence ........ CRITICAL

The smart money is asking questions.

Are you?

Press any key to reconsider your allocation strategy...

📎 It looks like you're trying to beat the market with 1890s charting technology.

Would you like to:

  • ☐ Keep paying 10x more for worse returns
  • ☐ Continue using a methodology with coin-flip accuracy
  • ☑ Look at the actual data
📎
C:\DORSEYWRONG\DISCLAIMER.TXT — Notepad
All data as of February 5, 2026. Data sourced
from public filings, fund fact sheets, and
third-party analytics providers. Past performance
does not guarantee future results. This site is
for informational and educational purposes only
and does not constitute investment advice. All
trademarks and fund names are the property of
their respective owners.

© 2026 DorseyWrong.com
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