Our Focus is "Pairs Trading ETFs"
Inversely Correlated Exchange Traded Funds - It's easy and profitable!
Your Advantages With Roebuck Systems
They determine all BUY and SELL signals every day after markets close and when all other information is available.
If signaled, just 5 minutes is needed to place orders any time before the next market open.
Combining the speed of our algorithms with the leverage of ETFs, multiplies the advantages of both.
Inversely Correlated ETFs:
They provide trades in both directions reducing risk and increasing profits without old fashioned short selling.
Our latest, highest current annual profit is over 150%.
All trades included in the chart below are conveniently sent to followers on the previous day. Where else are these returns available in a choice of investments and a free Blog?
Investing in better than 95% inversely correlated and leveraged ETF pairs with proven algorithmic decisions, provides a lower-risk strategy that invests in both directions of covered markets. Leveraged pairs requires a short-term investing decision process and investments from our algorithms typically average less than 10 days per trade. The unique mathematical algorithms we use have been developed over 8 years and they have a proven ability to boost performance.
Here is today's blog:
Monday - Nov 19th 2018
Leveraged Inverse Correlation.
The history goes back several hundred years to Edward Lloyd and his London coffee shop in the 17th century.
Being a favorite gathering place for sailors, the conversation often related to what happened to ships lost at sea.
(blog continues below chart.)
Some of these wealthy coffee drinkers joined forces to provide payments to ship owners who lost ships and cargoes.
Insurance was born for the owners who were STRICKEN by these losses. This is a long way around to explain a STRIKE price on an OPTION if your ship is lost at sea.
These coffee drinkers also invented the Chicago Board Options Exchange, but they never knew it.
If you own a ship worth $100, (we will call it a canoe), you could earn extra income by writing a contract on your canoe that reads – Before the third Friday of December, you can buy my canoe for the STRIKE price of $110 for a fee of $5. You will make $5 on a $100 asset or 5% profit.
Nobody is going to buy your canoe unless the market price goes up before the EXPIRATION date. If the value goes up to $120, someone will pay you $110 and immediately sell it for $120 and make a $10 profit.
Everybody wins something. You were paid $110 for a canoe that was worth $100 plus $5 for the December contract and for every month you write a similar contract. A good income for your Pension Plan is selling CALL OPTIONS against your assets.
The buyer also made a nice profit. He leveraged his $5 and made 100% profit but would lose his entire $5 if the contract expired below the $110 STRIKE PRICE. However, he could also repeat this every month.
Imagine a world where this same ship (or canoe) might go down in value and you want to buy a canoe at a lower price. You might write a contract that reads – Before the third Friday of December, I will buy a canoe for a STRIKE price of $90 and will pay $5 for this OPTION contract.
Again, nobody is going to buy a canoe unless the market price goes down before the EXPIRATION date. However, if the value of canoes goes down to $80, someone will pay $80 and immediately sell it to you for $90 to make a $10 profit.
Everybody wins again. You paid a lower price of $90 for a canoe but you also received an income of $5 and maybe additional income for every month that you wrote contracts that were never exercised.
A CALL OPTION is sold by you if you own a canoe and are prepared to sell it for an agreed higher price by an agreed date.
A PUT OPTION is written by you if you want to buy a canoe and are prepared to buy it for an agreed lower price by an agreed date.
Non-leveraged ETFs are like Mutual Funds. They represent stocks or other assets that move up or down according to the underlying market value. It can own or represent stocks and shares (and canoes) at their current market value.
Leveraged ETFs represent OPTIONS on those same assets that increase or decrease in value at a much faster rate. The difference is that owning the underlying options creates greater movement and higher daily risk. Additional losses are incurred every day because these ETFs require daily adjustment of all the OPTIONS to maintain the published leverage at the start of every trading day.
Leveraged ETFs that move in opposite directions can be achieved by using underlying PUT OPTIONS or CALL OPTIONS. These pairs of resulting ETFs move in the exact opposite direction at different leverage amounts. (Think 100% Inversely Correlated Leveraged ETFs!)
Our algorithms quickly define the potential direction of ETFs and can raise profits by trading inverse pairs of ETFs in both directions as opposed to only trading in a single direction and then holding CASH.
Remember, you can CALL him up or PUT it down.
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