How To Use

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So you are ready to begin using Market Timing Advisors timing signals - but where to start? Just follow these simple steps and you'll be one step closer to accomplishing your investment goals!

 

Step 1-Decide Which Investment Vehicle You Are Going To Use

Depending on your personal preferences and investor profile, you will need to decide which of these investment vehicle you are going to use - whether that will be Options, Futures,  ETF's,  Mutual Funds, or even a combination of two or more of these.

Using Options, Futures or ETF's

If you are going to use Options, Futures or ETF's, you will need to open an account with a brokerage firm in order to buy and sell.

Options and Futures Trading commodity futures and options is not for everyone. It is a volatile, complex, and risky business. Both require a lot of paperwork and have risks not found in Mutual Funds. Before you invest any money in futures or option contracts, you should:

  • Consider your financial experience, goals, and financial resources and know how much you can afford to lose above and beyond your initial investment.
  • Understand commodity futures and option contracts and your obligations before entering into those contracts.
  • Understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
  • Know whom to contact if you have a problem or question.

 

ETF's "Exchange-traded Fund" refers to shares that trade all day on the major stock market exchanges just like regular stocks. ETF's provide some flexibility you might find useful, and they can be bought or sold anytime the market is open. However, like regular stocks, ETF's charge a commission when you buy or sell. They also have a spread, which is the difference in price between your bid and ask. Over time, this can add up and diminish your returns.

Using Mutual Funds

The Profunds and Rydex families of investment fund were designed specifically with market timing investors in mind. Unlike conventional index funds, Profunds and Rydex mutual funds offer greater freedom and flexibility of movement - without exchange restrictions or redemption fees. In other words, you can make as many changes to your portfolio as you want, as often as you want, without fees. Additionally, they employ sophisticated and aggressive investment techniques that maximize daily index returns.

To open an account with Rydex

1. Go to their website at http://www.rydexfunds.com/index.shtml

2. Click on "Open Account"

3. Complete an application online and sign it using an electronic signature (e-signature).

 

 Note: Establishing an account online with an e-signature is not suitable for IRA accounts, accounts with an advisor, corporate accounts or trust accounts. For the correct application for these accounts:

 

      -Download an application online, complete it, print it and mail to Rydex.      

 

      or  -Download an application, print it, complete it by hand and mail it to Rydex. 

 

      or- Request an application online to be sent via mail.

    **The account minimum is $25,000 (This is not a per fund minimum). Accounts established online are subject to a $50,000 initial investment maximum. Once the account has been established, subsequent investments may be made via check, wire or ACH transfers. However, for clients investing through MTA, Rydex Funds are also available for a smaller investment.

    To open an account with Profunds

    1. Go to their website at www.profunds.com

    2. Click on “Open Account”

    3. If you are establishing an account other than an Individual Account, such as an IRA account, corporate account or partnership account, You will need to download, print, complete, and mail a New Account form if you wish to open an account type not listed above (Retirement, Trust, Corporate, Partnership, etc.).

    4. Complete the application and follow the steps as provided.

     **A minimum investment of $5,000 is required for discretionary accounts controlled by a financial professional. A minimum investment of $15,000 is required for self-directed accounts controlled directly by investors.  

     

    Step 2- Applying the Market Timing Advisors Timing Signal

    Once you have decided which investment vehicle you are going to use and opened an account either with a mutual fund or through a brokerage, using our Market Timing Signal is easy!

    If the current signal says Buy, you buy the market through shares of your selected investment vehicle, keeping in mind your particular investment strategy.

    If the current signal says Sell,  you can either liquidate your long shares and keep the return in cash or in a money market fund, or liquidate your current long position, and then sell the market short by shorting shares of your selected investment.

    Note: Short-selling is when you sell a stock that you have borrowed from your broker, with the purpose of trying to replace it later at a lower price. If you use the Mutual Funds that we mentioned above, then you would simply move into their "inverse" fund with no borrowing of shares required.

    If the current signal says Cash, you can choose to you liquidate your shares and keep the proceeds in cash or in a money market fund.

    If Market Timing Advisors is displaying a PPP, or Potential Pivot Point, you should consider liquidating half of your shares and place them in a money market fund or go to cash.