When should I enter and what size?
Author: beth527
Creation Date: 11/20/2017 5:55 PM
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beth527

#1
New subscriber today. When should I enter this strategy? On the next signal? Will you let me know based on a 10K investment.
Thanks
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B.W.O.

#2
Hi, Beth527! Generally, we only have a single entry, but I do get secondary signals to enter and today we had an entry signal so if you're looking for what my algorithm says it's to enter again today.

Thanks, Beth!
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beth527

#3
I'll be trading TQQQ and SQQQ. So if I entered today, would I be going long TQQQ for 4000. based on the initial 10,000?
Thanks
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B.W.O.

#4
No, it'd be with $9700 or 97% of your equity or 0.97*(2/3)=.65 if you wanted to match QLD and QID.
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beth527

#5
Thanks BWO
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B.W.O.

#6
You're welcome, Beth! And, yes, I see your name in the list of subscribers. Thanks!
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raindrop

#7
Hello All,
Is there any instruction set or manual for this signal? I mean when should we expect to receive the signal and when should we enter the trade? Are orders that I shall be placing based on this signal are Market orders or Limit orders etc?
Thanks
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B.W.O.

#8
Raindrop, they're all market orders for the open the next day. You're to decide your own risk tolerance and review my publications as to the size should be 97% of QLD and QID at a minimum but you can put up to a 75% debt to equity ratio at Fidelity Investments in TQQQ and SQQQ and that's what I do. The instructions are generally straight forward, and I hope Eugene can clarify how best to size everyone's portfolio when they subscribe.

Thanks, Rain! I'll wish us luck but we don't need it. We have Arbitrage, and not just any, Pairs Arbitrage.
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Eugene

#9
@raindrop

Everything is described in detail in this article: WealthSignals Legal Disclosures and Policies
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raindrop

#10
Thanks for both of you for the helpful answers. I was able to come up with another question.

- Is there any rule to call off a trade if market gaps-up next day. For example if S&P futures are indicating > 1% - 1.5% pop at the market open, do we still proceed with the signaled trade ?
Thanks again.
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B.W.O.

#11
You're right, that is the only failsafe. A Gapup would kick the trade out, since it's 97% and a 1.5% change up in the NDX not the SPX would kick the trade out.

Nice observation, I've explained that but not been asked about it.
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B.W.O.

#12
Lazy and Stupid is the phrase I don't want any of you to have... if I am in a trade, this system at a 1:1 leverage factor leaves 3% upside on the table before entering but if it has entered and you see a position you are supposed to go up to 1/0.75 is 133% of Equity - 3% is 130% of your account value. And this will also kick trades out in the same way just note to reduce sharecount in order if the NDX has not risen 1.5% on the open..or fallen in the case of a short.
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