Bear Alarm: Market Timing Works, It Reduces Risk, Not Return Potential

I recently developed a market timing indicator called "Bear Alarm", which tends to be successful in identifying those major market downturns in history. The strategy based upon the "Bear Alarm" indicator is constructed as follows: when the "Bear Alarm" is on, put the money into cash (I assume a zero return on cash in the historical back-testing, equivalently putting all your money under your bed, if you don't trust the banks during trouble periods); when the "Bear Alarm" is off, put the money into the market. Here I have run the historical back-testing for S&P 500 for the last 20 years, and Dow Jones Industrial Average for the last 100 years. For S&P 500, the Bear Alarm Timing strategy returns 13.4% per annum while S&P 500 returns 8.8% per annum for the last 20 years. For Dow Jones Industrial Average, the Bear Alarm Timing strategy returns 11% per annum while Dow Jones Industrial Average returns 5.8% per annum during the last 100 years.