Sunday, May 17, 2015

How to Use My Signals

Revised 5/25/15

We have been running the signals live now for almost two months, and the results have been positive, and I have received some great feedback.

I created two levels of signals, the 2 hour and the daily (4 hourly for SVXY).  The signal when sent, will indicate if it is a 2 hour or a daily signal.  They do not correlate with each other.  The 2 hour is designed for 1-2 days, and the Daily will run with the longer term swing trend, up to two weeks in a trending market.

SPY, IWM, BIB, and GDX signals allow you to go long and short depending on whether the signal is a buy or is a sell. You also can substitute the leveraged ETF's and use options to increase returns.  If you are using regular leverage, set a 2% or a 2% trailing stop to manage for 2 hour and 4% for the daily).  If using leverage give it 3%, to 6% for daily, and options, I usually go out two weeks, at the money, and will give it 25% for the 2 hour, and a month for the Daily.

I try to bring it up to break even on all my stops as soon as practical to take out the risk.

GLD, I just use Calls or puts.

SVXY two hour buy, buy either SVXY or XIV, on a sell, get out, do not reverse. (I am still watching a nice VXX long signal to deploy).

SVXY 4 hour, my favorite trade. When you get a buy here, short UVXY with slightly out of the money options, two weeks out.  VXX puts work, as well.

As a reminder, these are probability trades, you will get chopped 20-25% of the time, but the trend moves will reward you well.

Thanks for the feedback..


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