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ETF Extremes Reaches 129.5% - Give The Strategy A Try - Join Today
Our ETF Extremes strategy once again proved that patience pays. The strategy has only been exposed to the market for approximately 64 out of the 565 trading days or 11.3% since its inception back in early 2006. Since then the cumulative gains have reached 129.5%. The S&P 500 (SPY), the major market benchmark has made a paltry 16.3%. insert.a.chart.ETF These are amazing statistics considering most people think that they constantly need to trade or be exposed to the market on a daily basis to be successful. We can’t tell you how many times impatient subscribers have written in to complain about the lack of trading in this strategy. To their credit, we have had extended spells where the strategy did not have any trades and many of our subscribers left during this period. This is why we only charge $39.95 per month, while most other services, who can’t claim such gains, charge far greater on a monthly basis. The ETF Extremes has proven its success. We have always stated that patience is the key to this strategy, however, in options trading most individuals, sadly enough, are looking for the quick profit. We were not too enthused by the lack of trading ourselves during the down periods, but our diligence and determination to stick with our proprietary indicators proved to be the right and responsible choice. The strategy is up 129.5% since its inception in early 2006 on 18 trades. The win ratio so far is an astounding 83% (15 for 18). This strategy has proved that trading often does not always lead to greater gains. According to the site Pro-Option-Profits.com (a wonderful site that monitors, analyses, and ranks over 90 different option advisory services and their strategies) our ETF Extremes strategy ranks as one of the top and most consistent options strategies in several different categories. We are certainly very proud of our accomplishments in this particular strategy. A signal was issued in our ETF Extremes strategy on Wednesday. Several of our proprietary indicators were in “extreme” territory, so as a result we sent out the following trade alert to our participating subscribers: Buy to Open SPY Jul08 51 puts (QQQSY) for $2.43. Much like our last trade in the ETF Extremes, we were anticipating a sharp move lower shortly after the alert was sent. The market traded sideways to lower for remainder of the trading day so obviously we decided to hold onto our position. The market popped back up today (Thursday) so we decided to lock in a profit and close the position for $2.64 or an 8.6% profit on the trade. Again, by staying diligent, minimizing our losses (check our performance page) and sticking with our guidelines we have had a 83% win ratio (15 out of 18 winning trades) since its inception back in early 2006 with a cumulative total return of 129.5%. Of course, we do not expect to have all winning trades going forward, that would be unrealistic, but we do know that with our money management and capital preservation techniques this strategy will be extremely profitable over the long-term. Our stop loss is usually set at $.30 -$.35 per trade so it would take quite a few losing trades to move this strategy into negative territory. Andrew Crowder Chief Options Strategist Crowder Investment Research by Andrew Crowder (Crowder Investment Research) Disclaimer: Please note that charts and commentary provided by the moderator are for educational purposes only. Any trades placed upon reliance on the moderator’s charts or information is taken at your own risk for your own account. Past performance is no guarantee of future results. While there is great potential for reward trading stocks, futures and options, there is also substantial risk of loss and you must decide your own suitability to trade. Future trading results can never be guaranteed. This is not an offer to buy or sell stock, futures, options or commodity interests. Most trading systems are based on historical formulas which have worked in the past. However, what has happened before may or may not happen again. You can lose all your money trading stocks, futures, and options and you must decide your own suitability as to whether or not to trade. Only trade with true risk capital you can afford to lose. Only trade markets you can properly afford to trade. Properly funded trading accounts typically perform better than those that are not. Never risk more than 2-3% of your account on any one trade. Always define your risk before entering a trade and place a stop to limit your risk. There are no guarantees or certainties in trading. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during a system’s draw downs. If you are looking for a guarantee, trading is probably not for you. Most people lose money trading. One of the reasons is that they lack discipline and are unable to be consistent. A system can help you become consistent. Ironically, worrying about the monetary aspect of trading can contribute to and cause a trader to make trading errors. Therefore, it is important to only trade with true risk capital. |
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