Our Focus is "Pairs Trading ETFs."
Inversely Correlated Exchange Traded Funds - It's easy and profitable!
Your main advantages are our algorithms.
They determine all BUY and SELL signals after markets close and when all other information is available.Your second advantage is convenience.
If signaled, just 5 minutes is needed to place orders any time before the next market open.Your third advantage are leveraged ETFs.
Combining the speed of our algorithms with the leverage of ETFs, multiplies the advantages of both.Your fourth advantage are inversely correlated ETFs.
They provide trades in both directions without old fashioned short selling.Your combined advantages are RESULTS
Our algorithms combine years of research and back-testing since 2011. Any discontinued stocks or ETFs in any of our groups are replaced by currently signaled BUYS. The average holding period for leveraged ETFs is less than 10 days
Here is today's blog:
Friday - Nov 16th 2018
The Logic of Pairs Trading versus Stocks.
It is no accident that our pairs groups have found their way to the top of the 1X ranking chart and the bullish groups have moved to the bottom.
Three years of giving trades ahead of time, has shown that our algorithms can exclusively operate in both directions.
(blog continues below chart.)
More important though is their speed and ability to overcome the rolling daily capital losses that occur with these 3x leveraged ETFs but more about that later.
With stocks or non-paired ETFs, we only trade when they are going up and must stand in cash when on the way down.
Our focused algorithms make it possible to trade almost continuously, now that we have ETFs that go in both directions and even better, leveraged ETFs in 100% correlated opposite directions.
But using options to create the leverage costs large management fees. For example, SPXL, which follows the S&P 500 Index, has average five-year management losses of about 280% in recent years.
That is close to 1/4% for every trading day in the last 5 years. Our average ownership is for 10 calendar days or 7 trading days. This averages out to about 1.75% of management costs for each trade.
That is precisely our advantage. Our algorithms are selecting the periods when the underlying asset is expected to move in a profitable direction and they are taking advantage of the 3X leverage.
We calculate we are getting about two-thirds or about 200% of that underlying 300% leverage that these ETFs are geared to move every day.
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