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Jeff Diercks
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Jeff Diercks, is an investapreneur and recovering CPA. He actively trades his own money and manages the assets of a select group of clients at InTrust Advisors, a Tampa, Florida based wealth management firm focused on trend following and price momentum strategies utilizing ETF securities. Mr.... More
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  • Five Ways To Profit With Signals 0 comments
    Nov 18, 2013 11:52 AM

    Subscribers are always asking me "What is the best way to profit from using's buy and sell signals?"

    There are so many that I thought I would list out the Top Five. Here they are:

    1. Build A Diversified Portfolio is an easy way to build a diversified portfolio of positions that each have their own set of buy and sell signals.

    Not every position in your portfolio will always go up in together with other positions. So why not build a portfolio that gets separate buy or sell signals on each piece? It is easy to do with our seven indexes!

    We even offer a few sample portfolios you can use in our member's area.

    2. Hedge Another Portfolio

    This is an option that few think about buy with all the leveraged ETFs out there, you can use one or more sets of signals to hedge another long-only portfolio.

    Let's assume you commit 70% of your capital to the long-only portfolio and the balance to your hedge. Let's assume you hedge with our signals for the S&P 500.

    You will make money in a bull market and then get signals to move to inverse ETFs in a bear market. If when you get the sell signal you buy a 2x leveraged inverse ETF, you would be effectively hedging 60% of your overall stock market with your net exposure just 10% long.

    Not a bad way to sit out a bear market!

    3. Portfolio Management

    I don't know how many times I ask potential clients for our advisory business "are you prepared for the next bear market?"

    They typically answer "no."

    I then suggest to them that they at least should know where the door is and when to exit through it.'s signals are a great way of gaining that intelligence. In fact our most stable and least likely to change signal, the S&P 500 buy and sell signals, may be just the ticket you need to find that exit and protect capital when the time comes.

    4. Market Exposure

    What if you looked at your current portfolio and then selected our index signals that most closely matched? You could then use the cumulative signals as your exposure meter.

    Let me explain how this might work in an example.

    Let's say you have a simple portfolio that 60% U.S. equities, 20% commodities and 20% international. So you would select our S&P 500 signals for the U.S. equity component. The DB Commodity index signals for the commodity piece and EAFE signals for the international allocation.

    Now let's say they are all on "buy" signals. Your exposure would then be 100%.

    However, let's say we issue a "sell" on the EAFE index. You would then have just two signals on a "buy" equaling 80% of your portfolio. So you might use those cumulative buy signals to reduce your overall portfolio exposure to 80%.

    In other words, use the buy signals as your cumulative measure of how much of your capital to have at risk at any given time.

    5. Manage 401(k) Risk

    For many people this is their largest liquid asset. So why do we just add money and never change the allocation, even in bear markets?

    Don't be that deer in the headlights when the next bear market comes! Instead use our signals to move to cash in your 401k and then back into equities when the coast in clear.

    Just using our S&P 500 signals for this purpose will more than pay for your subscription in protected capital when that mean old bear finally comes!

    I hope this helps. I you can think of other uses, give me a shout out. In the mean time, please consider a 30 day free trial of

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