Core-Satellite investing combines a passive (strategic) investment allocation with a tactical (market timing) approach. In this sense, it is a hybrid strategy.

The most volatile part of an overall allocation - the equity portion - is market timed.  The quieter, less volatile part - fixed income bond funds - is passive. 

Equities present challenges to investors because they are volatile (i.e. high risk).  During equity bear markets, drawdowns can be severe: - 10% to -25% drawdowns (and even greater) are not uncommon.  Therefore, preserving capital in during down markets is essential - especially for older investors with shorter time horizons.

The market timing approach used for the stock allocation may not be viable for less experienced investors.  This is because following a market timing model is not easy.  It requires a great amount faith and discipline.  In addition, getting a hold of a competitive market timing model for the stock market is not easy.

Market timing signals are updated daily just before the market close every trading day.  Some days there are no changes. Changes in market direction occur every 10-13 trading days on average, but this is not to say that they can't occur on a day-to-day basis.  During sustained trending periods, the directional signal may not change for weeks.  The signal is updated daily via password protected web site between 3:45pm and 4pm EST.

Not necessarily.  This is why it behooves investors to review the historical performance of the market timing model and to "test drive" it for at least 6 months.  This is a good idea as well to make sure that the model is compatible wit the character and lifestyle of the trader or investor.

If the Core-Satellite model (both passive and tactical) are not at least outperforming the regular WealthMaxBuilder portfolio (which is the 100% passive approach), then it makes no sense to run the hybrid model.  The reason for this may in fact be that the investor is not running the market timing model faithfully. It could also be that the market timing model is simply not cutting the mustard.  Better to simply run the passive model in this case.  

I recommend allocating 50% to the tactical market timing model and 50% to the Core fixed income part.  

Because the market timing model is a competitive one and signal updates are provided every day, the overall Core-Satellite model costs $79/month.  This is a promotional rate, and will be raised to $149/month in the future, once a limited pool of subscribers is interested in an exclusive arrangement.