Investment Strategies


The EquiTrend money management system can be used to trade almost any type of investment product. It can be used to trade stocks, mutual funds, ETF's, options, futures, or even manage your 401k. You can use our system to manage part of your portfolio or your entire portfolio. Several of our members follow our favorite strategy using ETF's and others trade mutual funds from Rydex, Direxion, and Profunds. Others actively manage a technology correlated mutual fund in their 401k. You may even decide to trade Index options or futures. The decision is completely up to you. The more correlated the investment product is to the major Indices, the better your performance will be. Ultimately, the investment product you decide to use will depend on the location of your assets and your comfort level with the various asset classes. Remember, your object is to reduce the volatility of your portfolio while substantially growing your investment capital.



The list of what to trade changes daily as more and more investment products are launched. To address the numerious questions we receive on this important topic, we have dedicated an entire web page called What To Trade explaining your options.



Trading the Nasdaq 100 index (NDX) is a double-edged sword. It has the most volatility and therefore the most potential for profits. If total returns are what you are after, then using EquiTrend to trade the Nasdaq 100 index (NDX) is your strategy. However, we prefer trading a portfolio of assets with highest overall reward/risk ratio. We have spent many hours studying the best combination of Indices to trade and have determined that equally allocating your assets between the Nasdaq 100 index (NDX) and the Russell 2000 index (RUT) produces the highest overall return with the least amount of volatility. We call this index combination the EquiTrend Growth Strategy. To implement this strategy in your own accounts, simply invest half your assets into the Russell 2000 Index (RUT) and half in the Nasdaq 100 index (NDX).

There are many investment products that track these Indices. To learn more about these investment products, please review our sections on Exchanged Traded Funds or Mutual Funds. If you would like to view an in-depth performance analysis of our EquiTrend Growth Strategy, please review our Performance Section.

Historically, the market usually favors either small caps or technology. Sometimes they favor both. Since1990, these two Indices complement each other like no other combination. If you are looking to grow your investment capital the most with the least amount of volatility, this needs to be your strategy.



If you wish to start using EquiTrend, you need to Join The EquiTrend Community. Once you become a member, we will send you an email every market day after the market closes. Most of the time the daily emails will not have a signal change and will only confirm the current position. Because a signal change could come any day, you need to get in the habit of checking your email on a daily basis so that you do not lose money by missing a trade signal.

EquiTrend is an end-of-day system. You should receive all EquiTrend signals on or before midnight Eastern Standard Time after the close of every market day. Please remember that email is not perfect and sometimes things can go wrong. If you haven't received an email, it is your responsibility to check the website for an EquiTrend update. Below is a description of the EquiTrend signals you will receive or can find on the Members page of the website:



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 utilize 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.



As mentioned above, EquiTrend is an end-of-day signal. This means your first opportunity to trade in regular market hours (9:30 - 4:00 EST) will be at the opening price the day after you receive the EquiTrend signal.

If you are trading mutual funds, you will more than likely have to execute your trade at the close of the following day. If you are trading ETF's or some other exchanged traded investment product, you can trade them anytime the market is open or in after hours trading.



Your decision to join the EquiTrend community will be one of the most financially rewarding decisions of your investing career. Following our industry leading market timing signals is a simple, stress free way to grow and protect your precious investment capital. To learn more about how the EquiTrend money management system can help you reap the rewards of investing with the market and not against the market, visit our How To Section. If you have any questions regarding our service, feel free to contact us at .

Thank you for evaluating the EquiTrend Stock Market Timing System.