Frequently Asked Questions
We've compiled below a listing of the most popular questions we've been asked. If you have a question, chances are someone else has asked it already and it is listed in our FAQ's. And of course, you can always Contact Us via email if you don't find the answer you are looking for in these pages. General:
System:
Is it important
for me to diversify my investments while using your system?
All investors should have a
diversified investment strategy for their portfolios. Basically,
we would never suggest that you put all your eggs in one basket.
In other words, spread your risk by investing your funds in
several places and ways.
We subscribe to a few basic rules.
First, we suggest that you never put more than half of your
investments into any one security. Generally investors prefer to
put much less than half of their assets into a single security.
Secondly, never invest in a timing
strategy if you need access to your money during the short-term
(within six months).
Finally, prepare yourself to stick
with the timing strategy. Investing with consistency takes a good
deal of fortitude, but when done properly can pay off royally.
Most investors buy high and sell low in the end, but with market
timing, those emotional decisions are left out of the equation.
This way you can maximize your profits!
For every $1000 I have on
deposit at a brokerage house, what are your recommendations with
respect to investment allocation?
Our suggested allocation is as
follows: 20% for options trades; 20% for trading QQQQ stock; 20%
for trading SPDRs, 20% for DIA, and 20% for mutual funds.
Do you offer managed
accounts?
We designed our market timing system to make it
simple for investors to manage their own accounts using traditional
or online brokers. Currently, we do not offer managed accounts.
Can I auto-trade your system?
Yes you can. Some brokers may apply our
signals to trade different securities. For instance, some of the
online brokers we work with apply our QQQQ signals to trade
Rydex funds. Click here
for a list of brokers that provide auto-trading on our signals.
What should I do if
I want to use your system and you are already in a position?
Generally, one of the most prudent approaches
is to use what is called 'dollar cost averaging'. Basically this
means if you
want to invest $10,000 using our market timing system, you could
simply start off with investing 20% of that figure, and every
week thereafter invest another 20% until you are fully invested,
or until we issue a new signal.
Of course, the other approach would
be to simply wait until we publish a new signal.
Remember, you the Trader shall be fully responsible for
any and all of your final Trading decisions.
How
much of your data is back-tested and how much was done in real time?
We created our market timing system at the
beginning to 2001. All our results since 06/2003 are
'real-time' results. All prior results are back-tested results.
How do you calculate returns?
We calculate all the returns for
our signals based on prices at market close. We do this because we
publish new market signals 45 minutes before the market closes; new signals
are indented to be acted upon at market close for the same day. Therefore,
the returns are based on the close price for the
date the signal was issued. All returns
are cumulative returns that assume 100% reinvestment of profits
gained. That means that if we made 5 trades with 10% returns
each, the compounded return would be 61% rather than a total 50%
return.
What
should I do when your signal displays 'Long', 'Short', or 'Cash'?
When we publish a "long" signal, we are expecting the market
to move up. To track the performance of the system, a hypothetical long position
is initiated at the market price within the couple of minutes after the signal was issued.
When we publish a "cash" signal, we are closing our positions and will remain in
cash until a new signal is generated.
When we publish a "short" signal, we expect the market to move down. In order to
track the performance of the system, a hypothetical short position is initiated
at the market price within couple ofminutes the signal was issued.
When do you update your signals?
Our signals are published during the trading hours and they assume
opening/closing a trade couple of minutes after the signal was published and
email alert was sent. The email alert is send out right after new signal is
issued.
In some cases a signal could be generated after the market
closes. In this case, it is intend for trading at the market open on the next
trading day
If you are interested in doing this type of
analysis on your own, you can always go to
MarketVolume® and sign up
for volume charts.
What is your procedure
for posting a new signal? Is it first posted on your website or
sent out by email alert?
A new signal will first be posted on our website; an email alert will then be issued
right after that.
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