Can your strategies be applied to ETFs, futures, etc?
How are your strategies made available to investors?
When/how are trading signals delivered (subscriptions-only)?
We trade leveraged index mutual funds (not to be confused with leveraged ETFs) from Rydex and ProFunds, but in many cases, our strategies could be applied to other assets as well, such as ETFs or futures (more on this in the next FAQ below).
These leveraged index MFs are like normal index MFs in that they're priced once-per-day at the close, and they follow an underlying index like the S&P 500. They differ in that they don't incur costs per-transaction or penalize active trading if traded directly at the fund custodian.
We change positions almost daily, but we do not trade intraday or day trade. All strategies execute trades only at the day's close.
We think we can reach our investment goals without sitting in front of a computer screen all day, and we cater to folks who think likewise. Put another way, we put a lot of time into designing our strategies, but very little actually trading.
For a detailed discussion of the five reasons we choose to trade leveraged mutual funds, please read our blog post: Why I Trade Leveraged Mutual Funds.
Can your strategies be applied to ETFs, futures, etc?
The short answer is yes, with some important considerations.
Our strategies are “officially” designed to trade leveraged mutual funds, but because these funds simply track an underlying index (such as the S&P 500), many prefer to instead trade our strategies using intraday vehicles (ETFs, futures, etc.) that also track those same indexes.
This introduces some unique opportunities like the ability to use intraday orders (stops, limits, etc.), but it also introduces an important challenge: transaction costs and slippage.
We’re able to reproduce the same result regardless of account size because leveraged mutual funds don’t suffer from per-transaction costs or slippage. But an investor trading with ETFs, futures, etc. would, and would need to be mindful of minimizing their impact on returns. That means trading in sufficient size, and choosing a broker that offers quality execution and a cost-effective fee structure.
We don’t provide “official” guidance regarding trading our strategies using intraday vehicles - there are just too many investor and asset specific considerations - but we’re confident that, armed with their own trading vehicle of choice, investors will be able to make the necessary adjustments.
How are your strategies made available to investors?
Two ways.
First, all of our strategies are available via managed accounts provided by Scott Daly of Comprehensive Capital. Click to read more.
Second, our newest strategies are available to individual investors via subscription. Subscribers receive the same daily updates that we're following in our own portfolios each day. Note that subscriptions are only intended for individual investors managing their own accounts. Click to read more.
Financial professionals interested in licensing our strategies to manage client accounts should contact us.
When/how are trading signals delivered (subscriptions-only)?
A link to each day’s report is sent to subscribers via email prior to the market open (usually prior to midnight ET), and also posted online in a members-only area.
Click to jump directly to one of our independently-audited strategies:
| M | = Available via managed account |
| S | = Available via subscription |