How to use our Booster Algorithms to trade 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 any time before the next MARKET OPEN. They should be placed to trade at the Market Opening Price.
Pairs are treated as a single investment. You will never have 2 buy signals for the Bullish and Bearish sides of any pair as this would be a neutral position.
We recommend that you reinvest proceeds from previous sales of the same ETF as this helps moving investments to the most profitable positions and reducing the least profitable.
Divide your capital to devote a minimum of approximately $1,000 per asset. We suggest a minimum of 5 assets and a maximum of 20 assets with "Buy" signals.
It is best to place all orders on the FIRST signal change marked with a "T" from a Sell to a Buy or from a Buy to a Sell. Signals should be taken anytime if the first-day signal is missed.
When both sides of any pair have a Sell signal, the algorithms are undecided, and you are in a neutral cash position, waiting for a "T" First Day Buy signal.
Before buying, you may choose to change the ETF in your portfolio when you see a "T" First Day Buy signal. Keep ETFs in your account for as long as they have a Buy signal. Sell them at the ‘Market Opening Price’ on the first day after you receive a new First Day Sell Signal.
You can switch up to higher ranking ETFs whenever new Buys are signaled. The Energy Sector has 5 pairs and you may wish to have no more than 1/3rd of your portfolio in Energy.
Remember that bullish and bearish sides of each pair are considered separately and independently from each other.
The average trades are held for less than 10 days but occasionally they can reach 60 days or more.Suggestions for Choosing Which Pairs to Follow. Here are some tips.
Professional Portfolios generally fluctuate with market conditions and contain 40% - 70% of US Stocks + 30% - 40% of European and World Stocks + 10% - 30% of Fixed Income and Bonds +10% of Specialty Items such as Volatility. DIVERSITY REDUCES RISK.
We follow 26 inversely correlated leveraged pairs of ETFs and give daily signals on 20 pairs. These are the only pairs that meet our volume and trading requirements in approximately 15 different Sectors.
Each month we select the Best 5, Best 10 and Best 20 currently performing ETF pairs. We usually only make changes in the following month when indicated by performance.
These selections are run through our Booster 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.
Here are some suggestions how to make your selections based on the amount of money you want to invest. You can stay within the ETF group lists or mix them up if you choose. The profit rankings are common to all assets and run every day. The Historical Data page on our website lists all signals and trades published over the past 3 years.
1 – We recommend a minimum of approximately $1,000 per ETF and a minimum of 5 diversified choices. We recommend one of our groups. Each list is equally ranked and published based on recent current profits by our algorithms.
2 – If you have $5,000 - $10,000 to invest, select 5 to 10 assets.
3 – If you have $10,000 or greater to invest, we suggest spreading risk over a minimum of 5 assets and a maximum of 20 assets. You will only be in 20 pairs on very rare occasions and 12 to 17 is more likely.
When you determine your ETFs, we prefer to start buying assets showing the “T” First Day signal, indicating the first day of a signal change. This will give long term best results. Contact your preferred broker to place trades on the first trading day following the new signal changes. Selling assets should also follow the initial “T” signal change. Look for the new Buy and Sell signals each evening. ALWAYS SELECT from the CURRENT HIGH RANKING ETFs.
We use Interactive Brokers at $1.00 per trade and Tradier Brokers at $3.49 per trade. Tradier offers $200 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.
We suggest an absolute minimum of $750 to be invested in each ETF chosen.
Choose a minimum of 5 ETFs if possible, or different ETF Sectors or follow the groups listed. More selections decrease volatility and risk.
Follow the rules for best longer-term results. Market opening prices are not reliable indicators of market closing prices.