FAQs Frequently Asked Questions
Dr K Market Direction Model
How do I handle my ETFs on buy or sell signals issued by the model?
The "mechanics" of the model switching signals:
1. The day when the MDM model switches from Buy to Sell signal, I have basically two actions.
(a) Sell all my existing Long ETF immediately.
(b) Buy "Inverse ETF" the same day.
2. Likewise, the day when the MDM model switches from Sell to Buy signal:
(a) Sell all my existing "Inverse ETF" immediately.
(b) Buy Long ETF the same day.
3. The day when the MDM model switches to a neutral (cash) signal, I have one action:
(a) Sell all my existing ETF positions.
Note, if I'm holding a focused ETF such as SLV/AGQ (silver) or GLD/DGP (gold), I treat these more as stocks so would most likely sell once they violated my sell stops.
First published: | 1 Aug 2011 |
Last updated: | 13 Sep 2011 |