This week I want to tell you about a strategy that could make you a lot of money.

#-ad_banner-#You probably haven’t heard much about it. That’s because for the past year and a half, my colleagues and I at StreetAuthority have been quietly designing and beta-testing a new investment system with a select group of about 500 loyal StreetAuthority readers.

It’s a system that we think could make you even more money in the stock market than anything we’ve ever created before.

In short: it solves one of the most common problems every investor faces — how to get bigger gains in a shorter amount of time.

I have to admit, when we first began the project, I was a little skeptical. When we were given the task of creating an investing system that could deliver bigger gains in a shorter amount of time, my first thought was “this sounds an awful lot like trading.”

And most people — including myself at first — equate trading with moving in and out of stocks in a matter of hours or days, racking up huge commissions and ignoring fundamentals.

Let me be clear: the vast majority of investors should not be doing this sort of “trading.” It’s a great way to lose your shirt.

But the truth is a trading system can be as complicated or as simple as you want. And in my experience, simple is better.

So with this in mind, my team and I put our heads together and got to work.

We dug through academic journals… SEC filings… government data…

We hired a Chartered Market Technician — one of only a few hundred of in the world. He backtested our top trading strategies using market data from the past few decades. We wanted to make sure the strategy could work during bear markets, wars, infaltion, deflation, bubbles, even a currency crisis. Everything.

If a particular strategy hadn’t outperformed the market for at least 30 years, then we didn’t bother with it.

We even brought in an accountant to get his perspective on which financial metrics actually matter…

Before I go any further, let me tell you what we ended up with has nothing to do with options, short-selling or anything complicated.

We call our discovery the Maximum Profit system.

It’s an elegant, yet simple system. We use two of the most reliable indicators in the investing universe — one fundamental, one technical — to identify when a stock is entering a “growth window.”

The result: bigger returns in a fraction of the time.

By our calculations, this system would have produced gains of more than 570% in the past decade. In other words, if you put $100,000 in this system a decade ago, then it would be worth more than $670,000 today.
 

Also, this simple strategy would have helped you steer clear of market crashes. In the 2008 financial crisis, this system would have gotten you out of the market five months before the bottom. And it would have gotten you back in just four days after the bottom.

What makes our system so different is that it’s designed to give investors a simple set of rules with clear buy and sell signals.

Having a set of rules — whether you’re trading or investing — is paramount. As my colleague Jimmy Butts and I like to say, rules take the emotion of out of investing. They provide discipline.

Since we went live with the Maximum Profit system, the average holding period for a trade has been just over four months. Most people who claim to invest for the long-term have an average holding period of less than that.

And our results have been amazing.

With a few loyal StreetAuthority subscribers investing alongside us, our model portfolio has delivered a total return of 31.5%, outpacing the S&P 500’s 26.3% return over the same time period. Some of our picks have boasted gains of 17%… 40%… even 181%.

That puts the Maximum Profit system in rarified company. In fact, it’s been the best-performing StreetAuthority service this year.

Another great thing about this system is it can work on all kinds of stocks. You can take any group of stocks, apply the Maximum Profit system to them and identify which are entering a growth phase.

But perhaps even more important, the system is just as focused on when to sell as when to buy. A good set of trading rules is to let your winners run and cuts your losses short. This protects investors from the wild swings we’ve seen in the market over the past few years.

There’s a lot more to say about the Maximum Profit system. And after tens of thousands of dollars spent on research and testing, we’re ready to pull back the curtain and reveal exactly how it works. My colleague Jimmy Butts has prepared a special video that explains all the details, including how you can get access to all of our latest recommendations. If you want to learn more, I invite you to follow this link.