FAQs Frequently Asked Questions

The discretionary portion has to do with position sizing and choice of ETF(s). Because these variables are not fixed, performance will depend on choice of ETF, leverage used, and position size. We offer 1-times, 2-times, and 3-times leverage ETF suggestions in each email we send to members when there is a change of signal, including a mention of how strong we believe the signal to be. Thus the member can decide whether to invest conservatively in a 1-times ETF or aggressively in a 2- or 3-times ETF.

There is also the rare signal that overrides the normal action of the model. We used to refer to this as discretionary, but that is a misnomer since the signal is still on a statistical basis as the model takes into account a number of variables. Thus, such a signal is still systematic rather than discretionary.