Follow our Algorithms to trade Stocks and 100% Inversely Correlated ETF Pairs.
See Sample Chart.
Follow our Booster Signals each evening. New Buys or Sells are marked with a “T” and orders should be placed with your Broker at your convenience, any time before the NEXT MARKET OPEN at the Market Opening Price.
ETF Pairs are treated as a single investment and you will never have signals to buy both the Bullish and the Bearish sides of any pair. This would be a neutral position.
We recommend that you reinvest proceeds from previous sales of the same Stock or ETF, This ensures moving investments to the most profitable positions and reducing the least profitable.
Divide your capital for a minimum of approximately $750 to $1,000 per Stock or per ETF Pair. We suggest following a minimum of 5 ETF pairs or stocks and a maximum of 20. More selections reduces volatility and risk.
Your account will average about 80% of the quantity of Stocks or Pairs that you choose to follow.
Before buying, you may choose a different stock or ETF pair to follow. We rank pairs and stay with them in the same groups each month and do not change our selections during the current month.
Keep Stocks and ETFs in your account for as long as they have a Buy signal and Sell them at the ‘Market Opening Price’ on the first day after you receive a new Sell Signal.
The Energy Sector has 5 pairs and you may wish to have no more than one or 1/3rd of your portfolio in Energy.
The average ETF trades are held for less than 10 days but occasionally they can reach 50 or more days. Stocks tend to be held for longer periods.Suggestions for Choosing Which Pairs to Follow. Here are some tips.
We follow all 26 suitable inversely correlated and leveraged pairs of ETFs which are the only pairs that meet our large volume and trading requirements in approximately 15 different Sectors.
Each month we select the Best 5, Best 10 and Best 20 currently performing Stocks and ETF pairs. We only make changes in the following month when indicated by performance rank.
These selections are run through our Algorithms every day after all input information is available and we distribute Buy and Sell signals every evening at about 7:00 PM Central Chicago time.
We use Interactive Brokers at $1.00 per trade and Tradier Brokers at $3.49 per trade. Tradier offers $200.00 or 60 days of free trading to new accounts. We have no financial arrangements or benefits with any Brokers.A Few More General Suggestions for Pairs Trading Beginners.
Follow the rules for best longer-term results. Note that market opening prices are not reliable indicators of market closing prices. Decreasing volatility trends are better and slower than increasing volatility trends especially for ETF pairs.
Periods of volatile "world-news-type" volatility can be the most unpredictable for our algorithms, mainly due to our "following-day-signals". However, the benefit of not having to watch and trade markets all day long is a considerable counterweight and advantage.