Long-time readers probably recognize the MarketClub name - they have been a long-time advertiser and supporter of this site. I am now tracking a hypothetical portfolio using their "Trade Triangle" technology. The purpose is to see how their technology tests in the long-term on a portfolio of four ETFs: SPY (SPDR S&P 500), USO (United States Oil Fund), FXE (CurrencyShares Euro Trust), and GLD (SPDR Gold Shares).
Now you can follow me on Stocktwits and Twitter!
The rules are simple:
1) Initial capital is divided into four parts and traded in equal dollar amounts in each of the four ETFs.
2) Long positions are determined by MarketClub's "Trade Triangle" technology. There is no fundamental or discretionary input for the portfolio.
3) The major “Trade Triangle” to watch in trading the 4 ETFs is the monthly “Trade Triangle” as this triangle determines the trend and your initial position. You would use a monthly GREEN “Trade Triangle” as a primary entry point and use the weekly RED “Trade Triangle” as a move to the sidelines and into cash position. You would only reenter a long position if and when a GREEN weekly “Trade Triangle” kicked in.
In other words, purchase when both the monthly and weekly trade triangles are Green. If either switches to red, sell. These are the buy/sell rules I will be tracking.
4) Positions are long-only, although MarketClub does provide sell/short signals. FXE (CurrencyShares Euro Trust) is currently on a sell/short signal but for the purposes of this portfolio it will not be shorted. The MarketClub sell signal on FXE was triggered at $135.67, with FXE now trading at $126.72.
My portfolio tracking will have limitations. Due to the intra-day signals sent by MarketClub I am not going to be able to provide near real-time updates on the portfolio. The portfolio will most likely be updated after the market closes. However, the portfolio will be tracking trades as if they were submitted when the buy/sell signal was received. The overall purpose is simply to track the performance of the signals on this portfolio, not to offer real-time trade signals. I will periodically provide performance updates on the portfolio.
The portfolio is currently a buy signal for USO with the remaining three ETFs in cash or "sidelines" mode.
Again, in full disclosure I am a Marketclub affiliate. However, I am not receiving any compensation for tracking this portfolio, my purpose is simply to track their trade signals real-time and put them to the test along side some of the other free portfolios I track on Scott's Investments.
Disclaimer: No current positions in stocks mentioned. Please note that Scott's Investments and its author is not a financial adviser. Please consult your own investment adviser and do your own due diligence before making any investment decisions. Please read the full disclaimer at the bottom of Scott's Investments.
No comments:
Post a Comment