FAQs Frequently Asked Questions
From the time the model issues a buy or sell signal, fail-safes typically keep losses to within 2% on the NASDAQ Composite, thus to within -6% on a 3-times ETF. That said, from peak to trough, as the market uptrends or downtrends on a signal, peak to trough losses can well exceed these levels since the model is looking to catch the fat part of the move, and a 5% pullback in the NASDAQ Composite may be part of its uptrend, thus could translate into a loss of 15% or even greater if you're in a volatile 3-times ETF. This is why it can be treacherous to enter a signal late.
Note, the values given above apply to general conditions, thus losses can exceed these levels if market conditions are unusually volatile. Always keep your stops in place so you dont exceed your risk tolerance levels.
|First published:||9 May 2011|
|Last updated:||9 May 2011|