Before You Trade
Every investor and trader hashis/her own tolerance for risk and expectations for reward. Selecting a strategy that is best for you should be done with the advice of a skilled investment professional that understands your personal financial situation, your investment goals and objectives, and your personal timelines. This site does not offer investment advice based upon your personal financial situation and cannot guide you as to which strategy is best for you. Our Model ignores the adverse tax consequences associated with short-term capital gains. Tax implications are a critical component of any investment strategy. Therefore, depending on the strategy you choose to implement, it is possible that any trading activity could result in a taxable event and result in lower investment return.Tacticaltradingsignal.com's trading model is run real-time each trading day. If a new signal is issued, it will be posted on this Web site the same day. Subscribers are also notified of the signal change by e-mail by 7 pm CMT that same day. If your selected investment vehicle is an ETF, your order should be placed before the market opens on the next trading day. Since ETFs trade like stock, they can be bought or sold at market open. This site assumes if the signal is issued after the close of the market, then ETF trading occurs at market open, the day after a signal change. This is the only realistic way to measure performance, as you could not possibly have acted on the new signal any earlier.
If your selected investment vehicle is a mutual fund, your order should be placed before or during the trading hours of the day following the signal change. Since most mutual fund families only calculate the Net Asset Value (NAV) at the end of each trading day, this ensures that you will buy the mutual fund at the first available price. This is a significant difference between ETFs and mutual funds: whereas you can buy an ETF right at market open, you in effect have to wait until market close to buy an equivalent mutual fund. Over time the performance impact of the one day delay should be fairly minor but, nevertheless, you should be on the lookout for fund families that are starting to offer intra-day mutual fund pricing.
While many trading systems tout their successful track records, few want to talk about what happens during the systems losing periods. Before you adopt any strategy with your own capital, make sure you understand the historical risks to capital, either real or hypothetical. This should help you and your investment professional understand whether you can stick with any investment or trading strategy.
Selecting a strategy designed for your investment profile is the job of an investment advisor or professional and you should consult with your investment advisor before trading any system.
Consider the investment objectives, risks, charges, expenses, and trading cost of buying and selling shares of the investment company carefully before investing. The prospectus contains this and other information about the investment company. Prospectuses may be obtained from the investment company or from your investment representative. Please read the prospectus carefully before investing.
The Long Only Strategy
This strategy keeps you invested only when our trading model tells us that the predominant market trend is up, and lets you step aside during down trends:
This strategy is the least aggressive of the four strategies the Tacticaltradingsignal.com follows. The position types are Long and Cash.
| When a new Bullish signal is generated,consider buying the appropriate investment that seeks to provide investment results that correspond to the performance of the S&P 500 Index, Nasdaq 100 Index, DJIA Index, Russell 2000 Index, or DJ Precious Metals Index. |
| When a new Bearish or Neutral signal is received,consider selling or exchanging the position to a money market fund or cash. See Assumptions & Limitations |
The Long Only with Leverage
This strategy is a more aggressive version of Long Only Strategy. With this strategy you are willing to use leveraged investments, therefore increasing both your potential gains and losses by 150% or 200%. It keeps you invested only when our trading model tells us that the predominant market trend is up, and lets you step aside during down trends:
This is a more aggressive strategy than the Long Only Strategy. Please note that there are certain risks and costs associated with margin or leveraged purchases that do not apply to the Long Only Strategy. You can lose more money than you initially invested when using margin. Please make sure you understand these risks before trading this strategy.
| When a new Bullish signal is generated by our system, consider buying the appropriate investment that seeks to provide investment results that correspond to 150% to 200% of the performance of the S&P 500 Index, Nasdaq 100 Index, DJIA Index, or Russell 2000 Index. |
| When a new Bearish or Neutral signal is received, consider selling or exchanging position into a money market fund or cash. See Assumptions & Limitations |
The Long and Short Only Strategy
This strategy is designed to make you profit whether the market is going up or down. It keeps you invested when our trading model tells us that the predominant market trend is up or down
This strategy is similar to the Long Only Strategy except that it interprets the Bearish signal to initiate a short position on S&P 500 Index or the Nasdaq 100 Index rather than take a Cash position. Cash positions are also possible when the trading model expects there is very high risk to long-term short positions. The strategy is either Long, Short, or in Cash.
| When a new Bullish signal is generated, consider buying the appropriate investment that seeks to provide investment results that correspond to the performance of the S&P 500 Index, Nasdaq 100 Index, DJIA Index,Russell 2000 Index, or DJ Precious Metals Index. |
| When a new Bearish signal is generated by our system, consider buying the appropriate investment that seeks to provide investment results that are inversely correlated to the performance of the S&P 500 Index, Nasdaq 100 Index, DJIA Index, Russell 2000 Index, or DJ Precious Metals Index. |
| When a new Neutral signal is received, consider selling or exchanging position into a money market fund or cash. See Assumptions & Limitations |
The Long and Short with Leverage Strategy
This strategy is designed to make you profit whether the market is going up or down. It keeps you invested when our trading model tells us that the predominant market trend is up or down:
This strategy is similar to the Long and Short Strategy except it makes use of the full leveraging ability of the account. It is by far the most aggressive of the four strategies. The historical hypothetical returns are higher with this strategy BUT so are the risks, as measured by drops in capital, called drawdowns, during strategy losing periods, and there is no guarantee that this can be repeated in the future. Cash positions are also possible when the model expects there is very high risk to long-term short positions. The strategy is usually either Long or Short with full leveraged positions taken when not in Cash.
| When a new Bullish signal is generated by our system, consider buying the appropriate investment that seeks to provide investment results that correspond to 150% to 200% of the performance of the S&P 500 Index, Nasdaq 100 Index, DJIA Index, or Russell 2000 Index. |
| When a new Bearish signal is generated by our system, consider buying the appropriate investment that seek to provide investment results that are 150% to 200% inversely correlated to the performance of the S&P 500 Index, Nasdaq 100 Index, DJIA Index, or Russell 2000 Index. |
| When a new Neutral signal is received, consider selling or exchanging the position into a money market fund or cash. See Assumptions & Limitations |
Variation 1: Mutual Funds in a Retail Account
Generally, a long only strategy can be executed using mutual funds in a retail brokerage account. With Tacticaltradingsignal.com, there are rare trades where a buy today and sell tomorrow situation occurs. Our model is designed and tested to catch major market moves in the stock market, which can help an individual manage their mutual fund holdings. Many fund companies do not permit frequent trading ofhis/her funds in large dollar amounts. In addition, many brokerages do not permit redemption/sale of a fund while the fund is settling.Each retail brokerage has its own settlement times for mutual funds. Even if you can execute a buy today, sell tomorrow trade, you may find that the fund will prohibit future trades into and out of the fund. Or worse yet, you may find yourself prohibited from all future purchases into their entire fund family at that brokerage. Please check with the fund company about their trading guidelines before placing a mutual fund order.
Variation 2: What about Funds in a 401(k) Plan
A few 401(k) plans offer self-directed brokerage accounts where the leveraged funds can be traded. Many, however, still do not offer either stock trading or leverage funds. Many company 401(k) plans do offer daily trading between funds. Please understand that frequent trades into and out of mutual funds may have restrictive consequences with your 401k-plan administrator. While a direct S&P 500 Index, Nasdaq 100 Index, DJIA Index, or Russell 2000 Index investment vehicle may not be available,there may be other funds or investments that are compatible with our trading model. Consult your 401k-plan administrator for details on trades between investment choices in the plan.
Variation 3: Stocks in a Retail Account
Generally, a long only strategy can be executed using stocks in a retail brokerage or retirement account. Tacticaltradingsignal.com model is designed and tested to catch major market moves in the stock market, which can help an individual managehis/her stock portfolios.
Past performance is not a guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.
Consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. Prospectuses may be obtained from the investment company or from your investment representative. Please read the prospectus carefully before investing.
Limitations: All data is from sources believed to be reliable, but we cannot guarantee its accuracy. We believe the Tacticaltradingsignal.com Model will continue to be profitable over time. However, past performance should not be interpreted to indicate or guarantee future results. Under no circumstances does the information presented represent a recommendation to buy or sell any funds or other securities. Several factors can cause an investor's actual experience to deviate from the experience represented in these models. See Also Assumptions & Limitations