FAQs Frequently Asked Questions
For any of the ETFs, you would buy a fixed percentage of the ETF on a buy signal, short the same percentage of the same ETF (or buy the inverse equivalent) on a sell signal, and move to 100% cash on a neutral signal.
Some members elect to pyramid into their ETF position whereby they buy more as the price moves higher. Of course, the parameters one sets on pyramiding their position is a function of their personal risk tolerance levels. Some may buy smaller % positions as their ETF moves higher. Others may buy equal amounts. The important point is that one should never hold a position size that is larger than their risk tolerance permits.
Note, in challenging, non-trending environments, one may be more prone to pyramid their position since they will lose less if the signal proves false.
The way you find the buy, sell or neutral signal is to log in and check what the signal is per the website results page. If the signal changes, you will get an email alert.
If you come in mid-signal, then know this is added risk to your position. So if the signal triggered at say "50" and you bought an ETF at 55, this is an added 10% risk you are incurring. Instead, you may opt to wait until the next buy or sell signal.First published: | 23 Sep 2011 |
Last updated: | 1 Feb 2023 |