Signal FAQ
What should I do if I join the EquiTrend community in the middle of a trade?
We recommend that you err on the side of caution. Entering a position in the middle of a buy or sell trade signal is usually more volatile, so in this case we would recommend that you only invest 50% of your capital on your first trade. Once a new trade signal has been issued (either an EquiTrend Buy or Sell signal), you can comfortably invest 100% of the capital you plan to allocate to the EquiTrend Money Management System. Protecting your precious capital is our mission!
When should I expect to receive the EquiTrend signals?
EquiTrend is an end-of-day signal. You should receive them on or before 12:00 PM Eastern Standard Time after the close of every market day. Please remember that email is not foolproof—sometimes, things can go wrong. If you haven't received your email or are having computer problems that affect your ability to receive email, it is your responsibility to check the EquiTrend.com Website for a signal update.
What types of signals are issued?
How you use EquiTrend depends a great deal on how you like to trade, but there are two basic methods to use the EquiTrend Stock Market Timing System, briefly described below:
EquiTrend is a quantitative based model that uses only market-based information (price movement, advancing issues, declining volume, etc.) to generate its signals. The model is completely objective—neither human emotion nor “judgment calls” figure into the equation.
If your current signal is losing money, should I move to a Money Market fund and wait for the signals to improve?
NO! No investment approach is 100% correct all of the time. Frequently when we issue a new signal, we will either lose money immediately, or at some time during the trade. We may even end up losing money when we close out a trade. However, if you exit a trade before it ends, you will usually look back and wish that you had stuck it out. It is important to keep your focus on the longer term and evaluate the performance of the signals based on how the trades complete. Take a look at the cumulative effect of the completed trades compared to the performance of the general market.
Over a complete market cycle, you should see that the signals are slowly building your wealth at a much faster rate, and with less risk than the general market. The more you learn about investing, the more obvious it becomes that you must choose an approach and STICK WITH IT. This is true no matter which approach you choose. If you are always second-guessing your approach and making decisions based on emotion, you will almost certainly end up losing money.
In short, our signals can create great wealth—but you must find the discipline to stick with them. This is much easier said than done, and many of our customers struggle with the concept. Starting with a smaller amount of money may help you as you learn to become comfortable with the discipline. The first step, however, is recognizing the need for discipline!
What is the difference between the EquiTrend Growth Plan and trading the Nasdaq 100 index?
Trading the Nasdaq 100 index (NDX) is a double-edged sword. It has the most volatility and therefore, the greatest profit potential. If total returns are what you are after, then using EquiTrend to trade the Nasdaq 100 index (NDX) is the strategy that can produce the highest returns.
However, if you would like an investment strategy that lowers your volatility/risk while maintaining a high return, then you might consider allocating your assets equally between investment products that benchmark to the Nasdaq 100 index (NDX) and the Russell 2000 index (RUT). We have spent many hours studying the best combination of indices to trade, and have determined that an equal allocation between NDX and RUT produces the highest overall return with the least amount of volatility. We call this “one-two punch” the EquiTrend Growth Strategy. To implement it in your own accounts, simply invest half your assets into investment products that benchmark to the RUT index and half in the NDX index.
Ultimately, what you decide to trade with EquiTrend Stock Market Timing System will be determined by your ability and willingness to tolerate financial volatility and risk.
How well do stocks or other ETFs work with EquiTrend?
The tide lifts and sinks most boats. Approximately 70% of a stock’s price increases and decreases are highly correlated to the overall equity market or sector to which it belongs. Because of this high correlation, following EquiTrend to trade most investment products (stocks, exchange-traded funds, mutual funds, indices, etc.) will enable your investments to outperform simply buying and holding them.
To evaluate other investment options, we have developed a powerful tool called the EquiTrend Interactive Calculator. It allows you run EquiTrend performance tests using any investment product listed in the database of Yahoo.com. Give the Interactive Calculator a try and see how well EquiTrend would have improved your investment performance—whether it is trading your favorite stock, exchange-traded funds, mutual fund, or another investment type. The choice is up to you.
How much of your data is back-tested?
Our performance pages have a mixture of back-tested and real-time information. All back-tested information is clearly marked with a different background color. We also placed footnotes at the bottom of all performance tables and calculators to highlight when our real-time performance began. This information has recently been updated with the exciting launch of our enhanced EQ2 market timing algorithm.
How do you calculate your returns?
All of our returns are based on market-on-open and market-on-closed prices. We do this because we publish any new market timing signal in the evening after the market closes, and any new signal is meant to take effect the next trading day. We provide both opening and closing prices so all our clients can track their progress with the investment instrument they trade (mutual funds, etfs, futures, options, etc.) as they follow our EquiTrend signals.
All returns are cumulative returns that assume 100% reinvestment of profits gained. That means that if we made 5 trades with 10% returns each, the compounded return would be 61% rather than a total 50% return.
Do you recommend particular stocks to trade with EquiTrend?
Not at this time. Several of our members use EquiTrend to help them time their stock purchases. Keep in mind that in a bull market, 60% of the stocks go up; and in a bear market 90%, of the stocks go down. No matter what the market, the EquiTrend Stock Market Timing System can help you swim in the current with your stock purchases. Would you like to receive stock recommendations? If so, please contact us at .
What should I do if I join the EquiTrend community in the middle of a trade?
We recommend that you err on the side of caution. Entering a position in the middle of a buy or sell trade signal is usually more volatile, so in this case we would recommend that you only invest 50% of your capital on your first trade. Once a new trade signal has been issued (either an EquiTrend Buy or Sell signal), you can comfortably invest 100% of the capital you plan to allocate to the EquiTrend Money Management System. Protecting your precious capital is our mission!
When should I expect to receive the EquiTrend signals?
EquiTrend is an end-of-day signal. You should receive them on or before 12:00 PM Eastern Standard Time after the close of every market day. Please remember that email is not foolproof—sometimes, things can go wrong. If you haven't received your email or are having computer problems that affect your ability to receive email, it is your responsibility to check the EquiTrend.com Website for a signal update.
What types of signals are issued?
- EquiTrend Buy Signal This is a buy/long signal, indicating that we anticipate the market will move higher. If you are currently short, cover your short position and take a long position the next trading day. If you are in cash, take a long position the next market day.
- EquiTrend Sell Signal This is a sell/short/cash signal. EquiTrend anticipates that the market will move lower. You should sell your long position and take a short or cash position the next trading day.
- Equitrend Cash Signal This is a cash/money-market signal. Equitrend anticipates that the market will trade sideways without moving significantly higher or lower. If you are currently long or short, you should exit those positions and place your assets in a cash or money market position the next market day.
How you use EquiTrend depends a great deal on how you like to trade, but there are two basic methods to use the EquiTrend Stock Market Timing System, briefly described below:
- Long Only This investment style means you only invest as the market increases. You invest with the market, or “go long,” when EquiTrend fires a Buy Signal. When EquiTrend fires a Sell Signal, you invest your money in some type of money market fund. Investors with this investment style plan to grow their money in the “up” markets and protect their capital in the “down” markets.
- Long and Short This investment style means you invest with the market, whether it increases or decreases. You invest with the market, or “go long,” when EquiTrend fires a Buy Signal; and “go short” when EquiTrend fires a Sell Signal. With this strategy, an investor plans to grow his or her money in both “up” and “down” markets.
EquiTrend is a quantitative based model that uses only market-based information (price movement, advancing issues, declining volume, etc.) to generate its signals. The model is completely objective—neither human emotion nor “judgment calls” figure into the equation.
If your current signal is losing money, should I move to a Money Market fund and wait for the signals to improve?
NO! No investment approach is 100% correct all of the time. Frequently when we issue a new signal, we will either lose money immediately, or at some time during the trade. We may even end up losing money when we close out a trade. However, if you exit a trade before it ends, you will usually look back and wish that you had stuck it out. It is important to keep your focus on the longer term and evaluate the performance of the signals based on how the trades complete. Take a look at the cumulative effect of the completed trades compared to the performance of the general market.
Over a complete market cycle, you should see that the signals are slowly building your wealth at a much faster rate, and with less risk than the general market. The more you learn about investing, the more obvious it becomes that you must choose an approach and STICK WITH IT. This is true no matter which approach you choose. If you are always second-guessing your approach and making decisions based on emotion, you will almost certainly end up losing money.
In short, our signals can create great wealth—but you must find the discipline to stick with them. This is much easier said than done, and many of our customers struggle with the concept. Starting with a smaller amount of money may help you as you learn to become comfortable with the discipline. The first step, however, is recognizing the need for discipline!
What is the difference between the EquiTrend Growth Plan and trading the Nasdaq 100 index?
Trading the Nasdaq 100 index (NDX) is a double-edged sword. It has the most volatility and therefore, the greatest profit potential. If total returns are what you are after, then using EquiTrend to trade the Nasdaq 100 index (NDX) is the strategy that can produce the highest returns.
However, if you would like an investment strategy that lowers your volatility/risk while maintaining a high return, then you might consider allocating your assets equally between investment products that benchmark to the Nasdaq 100 index (NDX) and the Russell 2000 index (RUT). We have spent many hours studying the best combination of indices to trade, and have determined that an equal allocation between NDX and RUT produces the highest overall return with the least amount of volatility. We call this “one-two punch” the EquiTrend Growth Strategy. To implement it in your own accounts, simply invest half your assets into investment products that benchmark to the RUT index and half in the NDX index.
Ultimately, what you decide to trade with EquiTrend Stock Market Timing System will be determined by your ability and willingness to tolerate financial volatility and risk.
How well do stocks or other ETFs work with EquiTrend?
The tide lifts and sinks most boats. Approximately 70% of a stock’s price increases and decreases are highly correlated to the overall equity market or sector to which it belongs. Because of this high correlation, following EquiTrend to trade most investment products (stocks, exchange-traded funds, mutual funds, indices, etc.) will enable your investments to outperform simply buying and holding them.
To evaluate other investment options, we have developed a powerful tool called the EquiTrend Interactive Calculator. It allows you run EquiTrend performance tests using any investment product listed in the database of Yahoo.com. Give the Interactive Calculator a try and see how well EquiTrend would have improved your investment performance—whether it is trading your favorite stock, exchange-traded funds, mutual fund, or another investment type. The choice is up to you.
How much of your data is back-tested?
Our performance pages have a mixture of back-tested and real-time information. All back-tested information is clearly marked with a different background color. We also placed footnotes at the bottom of all performance tables and calculators to highlight when our real-time performance began. This information has recently been updated with the exciting launch of our enhanced EQ2 market timing algorithm.
How do you calculate your returns?
All of our returns are based on market-on-open and market-on-closed prices. We do this because we publish any new market timing signal in the evening after the market closes, and any new signal is meant to take effect the next trading day. We provide both opening and closing prices so all our clients can track their progress with the investment instrument they trade (mutual funds, etfs, futures, options, etc.) as they follow our EquiTrend signals.
All returns are cumulative returns that assume 100% reinvestment of profits gained. That means that if we made 5 trades with 10% returns each, the compounded return would be 61% rather than a total 50% return.
Do you recommend particular stocks to trade with EquiTrend?
Not at this time. Several of our members use EquiTrend to help them time their stock purchases. Keep in mind that in a bull market, 60% of the stocks go up; and in a bear market 90%, of the stocks go down. No matter what the market, the EquiTrend Stock Market Timing System can help you swim in the current with your stock purchases. Would you like to receive stock recommendations? If so, please contact us at .
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