FAQ

A couple of people have asked me questions on the system, what this blog is all about so I've decided to do write this FAQ post for new readers.

Q: What is the system?

A: The system is an investment strategy that give trading signal based on a number of variables. It tells you went you should be long and when you should stay out of the market all together. I love trading but my job and school were getting in the way so I developed this mechanical system to trade the market.

Q: Have you back tested the system, and what were the results?

A: Yes, I've personally back tested every buy signal given. Over my 12 year research period the system has beaten the S&P 500 every single year. Not only did it provide better returns it did so with less risk because half the time we are out of the market.

Q: How are you tracking performance? What position do you take when you are long? What position do you take when your short?

A: I've set up two portfolios on Marketocracy. One is a long only fund that will only be in the market when we have a buy signal and in cash when we don't. The other is a long/short fund that will go short when ever a buy singal is not in effect. You can find a link in the lower right hand side under potfolios, this will show you how the system is performing.

When we are long we will be buying the Nasdaq Ultra leveraged ETF this symbod is QLD. The investment seeks daily investment results that correspond to twice the daily performance of the NASDAQ 100 Index. So if the Nasdaq is up 1% we will be up 2%.

When we are short we take a position in QID which is opposite of QLD and moves twice the inverse of the daily performance of the NASDAQ 100 Index. So, if the Nasdaq is down 1% we are up 2%.

Q: What are your personal tardes?

A: This month I decided to become a full time trader. My job was OK but I loved the markets too much. So along with the system signal I'll also post any trades I make throughout the day. Most of my trades will be in options but from titme to time I may recommend a stock. I choose my positions based on technical analysis, and I mostly look for stcoks that are ready to breakout or breakdown. I'd like to add that option trading is an extremely risky endavor and should not be used by most traders. My picks are for my own personal track record.

Q: What else is this blog about?

A: I'll also be posting intresting commentary, research, and trading ideas from time to time.

Well I think that covers everything if you have any more question please feel free to post them.

Thankss!