Hi! B.W.O.

What a robust trading strategy that you have.

I am interested in subscribing.

However, I have few questions here:

1. I would like to trade by using TQQQ and SQQQ. TQQQ is equivalent to QLD and SQQQ is equivalent to QID, right? Just the TQQQ and SQQQ are 3X instruments.

2. By reading the past posts from you, the maximum drawdown by trading TQQQ and SQQQ is 57% (97% cash position). And, could you provide the annual return (Backtest Results) each year from 2007 to 2017 by trading TQQQ and SQQQ (97% cash position)?

3. In order NOT to miss the trading signals from you, after subscribing to your trading system, could I get two separate trading signal emails to my two email addresses?

Thanks and happy trading!

Alex

QUOTE:
3. In order NOT to miss the trading signals from you, after subscribing to your trading system, could I get two separate trading signal emails to my two email addresses?

Such failover is not a WealthSignals feature.

Fairone99, here's the 6/21/2006 to present Annual Returns on $10,000 at a 97% allocation to TQQQ and SQQQ, Not QLD and QID, note for others.
Period Starting Return Return % Max DD % Exposure % Entries Exits
6/22/2006 $5,614.83 56.15 -5.98 65.73 5 4
1/3/2007 $12,408.10 79.46 -26.85 82.97 10 10
1/2/2008 $50,146.54 178.95 -46.44 91.99 10 10
1/2/2009 $142,558.34 182.37 -29.52 103.03 9 9
1/4/2010 $44,525.84 20.17 -38.77 103.55 7 7
1/3/2011 $54,019.61 20.37 -44.92 99.66 8 8
1/3/2012 $206,042.40 64.53 -15.14 70.41 10 10
1/2/2013 $844,919.74 160.84 -10.09 100.44 9 9
1/2/2014 $669,391.10 48.85 -22.99 108.01 6 6
1/2/2015 $2,841,369.79 139.31 -12.41 96.68 8 9
1/4/2016 $3,806,236.46 77.98 -19.47 117.17 9 8
1/3/2017 $7,080,842.02 81.51 -14.16 113.96 5 5


All Trades Long Trades Short Trades Benchmark Buy & Hold (TQQQ)
Starting Capital $10,000.00 $10,000.00 $10,000.00 $10,000.00
Ending Capital $15,768,074.78 $15,768,074.78 $10,011.43 $396,377.83
Net Profit $15,758,074.78 $15,758,074.78 $11.43 $386,377.83
Net Profit % 157,580.75% 157,580.75% 0.11% 3,863.78%
Annualized Gain % 90.56% 90.56% 0.01% 38.02%
Exposure 110.60% 110.60% 0.00% 100.34%
Total Commission ($1,518.45) ($1,518.45) $0.00 ($7.95)
Return on Cash $581.07 $581.07 $11.43 $3.64
Margin Interest Paid ($164,998.87) ($164,998.87) $0.00 ($777.69)
Dividends Received $41,499.08 $41,499.08 $0.00 $57.45

Number of Trades 96 96 0 1
Average Profit $164,146.61 $164,146.61 $0.00 $386,377.83
Average Profit % 5.95% 5.95% 0.00% 2,635.32%
Average Bars Held 20.93 20.93 0.00 1,959.00

Winning Trades 77 77 0 1
Win Rate 80.21% 80.21% 0.00% 100.00%
Gross Profit $16,929,582.29 $16,929,582.29 $0.00 $387,094.43
Average Profit $219,864.71 $219,864.71 $0.00 $387,094.43
Average Profit % 8.87% 8.87% 0.00% 2,635.32%
Average Bars Held 20.17 20.17 0.00 1,959.00
Max Consecutive Winners 13 13 0 1

Losing Trades 19 19 0 0
Loss Rate 19.79% 19.79% 0.00% 0.00%
Gross Loss ($1,048,588.79) ($1,048,588.79) $0.00 $0.00
Average Loss ($55,188.88) ($55,188.88) $0.00 $0.00
Average Loss % -5.87% -5.87% 0.00% 0.00%
Average Bars Held 24.00 24.00 0.00 0.00
Max Consecutive Losses 3 3 0 0

Maximum Drawdown ($1,901,734.25) ($1,901,734.25) $0.00 ($82,585.81)
Maximum Drawdown Date 7/3/2017 7/3/2017 6/21/2006 2/9/2016
Maximum Drawdown % -46.44% -46.44% 0.00% -54.14%
Maximum Drawdown % Date 10/27/2008 10/27/2008 11/22/2017 7/2/2010

Wealth-Lab Score 43.85 43.85 0.00 17.37
Sharpe Ratio 1.69 1.69 0.00 1.13
Profit Factor 16.15 16.15 0.00 ∞
Recovery Factor 8.29 8.29 ∞ 4.68
Payoff Ratio 1.51 1.51 0.00 0.00
Profit / Total Bars $5,477.26 $5,477.26 $0.00 $134.30

For those wondering, this is the allocation I follow which is a 133% of Equity Allocation to TQQQ and SQQQ.


All Trades Long Trades Short Trades Benchmark Buy & Hold (TQQQ)
Starting Capital $10,000.00 $10,000.00 $10,000.00 $10,000.00
Ending Capital $587,528,617.21 $587,528,617.21 $10,011.43 $633,239.41
Net Profit $587,518,617.21 $587,518,617.21 $11.43 $623,239.41
Net Profit % 5,875,186.17% 5,875,186.17% 0.11% 6,232.39%
Annualized Gain % 161.59% 161.59% 0.01% 43.80%
Exposure 178.11% 178.11% 0.00% 106.26%
Total Commission ($1,518.45) ($1,518.45) $0.00 ($7.95)
Return on Cash $13,329.82 $13,329.82 $11.43 $3.64
Margin Interest Paid ($11,754,147.54) ($11,754,147.54) $0.00 ($2,280.93)
Dividends Received $1,337,117.20 $1,337,117.20 $0.00 $92.83

Number of Trades 96 96 0 1
Average Profit $6,119,985.60 $6,119,985.60 $0.00 $623,239.41
Average Profit % 5.96% 5.96% 0.00% 2,635.34%
Average Bars Held 20.93 20.93 0.00 1,959.00

Winning Trades 77 77 0 1
Win Rate 80.21% 80.21% 0.00% 100.00%
Gross Profit $623,422,311.85 $623,422,311.85 $0.00 $625,423.87
Average Profit $8,096,393.66 $8,096,393.66 $0.00 $625,423.87
Average Profit % 8.88% 8.88% 0.00% 2,635.34%
Average Bars Held 20.17 20.17 0.00 1,959.00
Max Consecutive Winners 13 13 0 1

Losing Trades 19 19 0 0
Loss Rate 19.79% 19.79% 0.00% 0.00%
Gross Loss ($25,499,994.12) ($25,499,994.12) $0.00 $0.00
Average Loss ($1,342,104.95) ($1,342,104.95) $0.00 $0.00
Average Loss % -5.87% -5.87% 0.00% 0.00%
Average Bars Held 24.00 24.00 0.00 0.00
Max Consecutive Losses 3 3 0 0

Maximum Drawdown ($99,383,126.32) ($99,383,126.32) $0.00 ($133,508.08)
Maximum Drawdown Date 7/3/2017 7/3/2017 6/21/2006 2/9/2016
Maximum Drawdown % -68.87% -68.87% 0.00% -68.32%
Maximum Drawdown % Date 8/19/2011 8/19/2011 11/22/2017 7/2/2010

Wealth-Lab Score 28.25 28.25 0.00 13.06
Sharpe Ratio 1.66 1.66 0.00 1.05
Profit Factor 24.45 24.45 0.00 ∞
Recovery Factor 5.91 5.91 ∞ 4.67
Payoff Ratio 1.51 1.51 0.00 0.00
Profit / Total Bars $204,212.24 $204,212.24 $0.00 $216.63

Thanks, Eugene and B.W.O. for answering my questions...

For B.W.O., is there any special reason that from the past posts that most of the time 97% cash is used? Maybe, we can simply allocate 100% cash for a non-margin account while trading TQQQ/SQQQ pair?

fairone99

You can but since I have to issue signals the day before I have to make sure that they'll execute and I want to give plenty of heads-up notice before going all in. That's the only reason for it. I can never be sure what the price will do overnight and I'd rather have the signals ready at 4:01 pm EST typically unless I'm out but very soon after that bear in mind there is a 15 minute delay between when I issue signals and when they hit your e-mail.

Thank you, B.W.O for the answer.

As for the email signal failover, as Eugene mentioned before, the WLP does not have such mechanism built-in. Is there any other way that can achieve sending separate emails to two different email addresses of mine?

There's almost always a way but as answer to your general usage question may benefit other users, I'll provide some ideas or workarounds if you create a topic here:

WealthSignals » General Discussions

Thanks in advance.

Thanks, Eugene and I will post it under the General Discussions.

Replied.

Hi B.W.O

I too am interested in subscribing to your system - it looks great.

As I live in Israel, I'm trying to work out how I'm going to follow your signals and take action in time.

As a rule, do you send out your signals by approx 4pm EST?

By when should I make sure the trades have been executed? The same day? First thing next morning?

Can I also ask you: Is there any particular stockbroker that you could recommend for me to place my orders through?

Thanks

Abe

Hi, aebbingj, The rule is to send within 2 hours of market close but I'm not required to send signals until 2 hours after market close and 2 hours before the market open but I do have to wait until 4:01 PM EST 1 minute after market close to send my WealthSignals to subscribers and once I do they get queued into a 15 minute window where there is a delay set by the site before they are submitted to subscribers.

Sometimes it's easier to wait a few minutes because the data isn't always what's in active trader pro and I have to edit it to what's showing in ATP to make sure the WLP signals are accurate. The only losing trade we had last year was caused by data error and did not impact significantly any of my performance histories.

So I'd recommend checking sometime after 1 hour after market close then before you go to be. This system only requires you to submit market orders and once you've done that you're finished. This takes me 1-2 minutes when there is a signal and very little time when the data updates to the correct values of QID and QLD then I don't have to do much but I can never get the signals before 4:01 PM and even if I do the values are typically something I have to edit. And if I wait a few minutes it's nearly always correct.

The stockbroker I'd recommend is Fidelity Investments, but any stock broker can execute this. The ONLY 3 Stock Brokers I have used to trade stocks is Fidelity Investments for over a decade and a half and dabbled at TD Ameritrade, but didn't really like that broker, and had professional allocator accounts at Interactive Brokers but IB was very difficult to use with the encoding card they make you use for "added security" and it was a pain because the cards would fade and getting an electronic fob was too expensive if you ask me.

Ex Post Edit: I had actually forgotten that I was at Scotttrade when I learned about Wealth Lab Pro at Fidelity Investments, but obviously Scottrade is not a broker I'd EVER EVER recommend.

Thanks for your help B.W.O

Can I just clarify with another couple of questions?

For right now, I won't be purchasing Wealth-Lab, I'll just be subscribing to your system and I'll be waiting to receive a signal by email. Then, I'll place an order with my stockbroker according to your signal.

So if I wait a few of hours after the market closes and then place my order according to the signal I received by email, can I assume the signal I received by email is accurate?
Can I place my order the following day, shortly before the market opens?

Also, do I need to start with a min of $10,000?

Many thanks

Abe

Abe, of course you can place your order for the next day! That's why this Website Wealth-Lab.com is so scalable! You can follow our EOD systems by simply placing a market order before the next market open when you get my signal. You don't have to buy the software that's for the quants like me to do for you and when I told them that I wanted their software to distribute signals this way they created this for us. I was always number 1 on the performance backtest series for many years in the format of the old website.

And the min is really 1 share of both. If you're broker allowed a low enough commission just the cost to purchase the ETF's is all it costs to start.

When you get my signal you can place a market order because the limit orders are the only order types allowed pre and post market. So it will start to execute the moment the market opens and that's when the system is supposed to buy.

Good Luck! Hope You Subscribe!

Ex Post Edit: And, $5,000 is the minimum at Fidelity Investments but retirement accounts can start with very little, next nothing really.

I want to brag that this system I put $1150 into my SEP and it's over $6k today from the signals you see here so if you can't understand compounding it sure is tempting to look at TQQQ and SQQQ because when we did use QLD and QID it was leveraged fully 2:1 to get 4:1 returns and once TQQQ and SQQQ came along we switched immediately. TQQQ and SQQQ weren't around when I started this system, and became more popular than mine but people didn't realize I'd shown every possible combination and I hope you see the profound resourcefulness of my intellect here.

Thanks a lot B.W.O. I'm looking forward to subscribing after I've found a suitable broker.
From what I understood after contacting Fidelity, they don't open accounts for non-US citizens, and they don't have an office here in Israel.
But there are brokers who do deal with non-US citizens, so I'll find someone.

Can you just give me a hypothetical example of what one of your signals might sound like so that I can explain to my broker what kind of orders I'd be asking him to place for me? (Would it be "buy..."? or "sell..."?)

Also do you give your signals based on a $10,000 investment? So if I start with $5,000, should I halve the quantity of shares you signal to buy? Or do I just ask my broker to use all my equity to buy the particular shares you signal to buy? And is it 97% of my equity that I should use as opposed to 100%?

Many thanks, much appreciated

Abe

Well, sorry about the Fidelity rec, for US Citizens this would be who I'd recommend, and the signals are for 97% of equity simply because I as the author of ETF Pairs Arbitrage Have used risk management techniques to determine this percentage is the most optimal and if the price rises to beyond what you've placed the order for so that it exceeds your available equity your broker might execute it still but WealthSignals won't and you shouldn't either in that case. Those are trades where you may have placed a market order but you don't get filled because your broker has to kill it. And if you call your broker a few minutes before open buy or sell you can use up to 100% of equity just make sure it will execute and hasn't risen 1.5% on the index overnight. For me also the 3% is there as a cushion and it's for expenses while you're in the trade.

I recommended because their brokerage accounts have debit cards and routing and account numbers linked to them so it's very similar to how a debit card works and I pay bills out of it and obviously the revenue from subscribers goes into that, too!

I will re-emphasize I'm going to be doing this the rest of my life having used WLP for over 1.5 decades.

QUOTE:
Also do you give your signals based on a $10,000 investment? So if I start with $5,000, should I halve the quantity of shares you signal to buy?

You can set any reasonable amount you desire when you subscribe to ETF Pairs Arbitrage and WealthSignals will adjust the number of shares to buy/sell. This is a general feature of WealthSignals which applies to any system. You're welcome to ask non-specific questions (i.e. not pertaining to this system) in the WS General forum: https://www.wealth-lab.com/Forum/Topics/Trading-System-Subscriber-s-Support-285