Long Inverse Strategies For ETF Investments

Long Inverse Strategy Investments

Introduction

Long inverse Strategies for ETF Investments work when the underlying target index starts to go down then the value of the ETF is then designed to go up.

The target index may possibly be broad, like the S&P500; index, or it could follow a specific area of the economy, such as the Technology sector for example.

Another example could be that if an index ETF that is based on S&P 500 index increases in price by $1 then an inverse ETF based on the S&P 500 index would in likelihood decrease by $1.

if an ETF based on a chosen sector decreases in price by $1, then an inverse on the chosen sector ETF would, therefore, likely increase by $1.

ETF’s and Long Inverse Strategy – An Ideal Investment platform

By adding exchange-traded funds (ETFs) to 401k portfolio or an individual retirement account (IRA) has its advantages.

The main advantage of investing in ETFs is the fees. Mutual fund fees have been known to cost the average American almost $155,000 on their 401(k) which can be as much as 20% of the portfolio potential after 45 years of investing.

Trading the Long Inverse strategy on ETF’s will leave more in the portfolio for equity growth making this ideal for Investment Managers.

 

Our Service

Below is a short explanation of how to implement our strategy successfully of Long Positions which is only available for our Premium subscribers / and Premium investors 

 

We are only accepting 500 members to our Premium Membership service First Come First Served

Long inverse Strategies for ETF Investments it is best to keep things simple and when executing our forecasts this is very much a key factor in its design which takes no longer than 15 minutes of work a day.

 


We believe that this is the only service of its kind in the USA. The results speak for themselves!

 

 

How to Execute:

Refer to the daily ETR Reverse order for the present working day.

If the underlying as- SPY; QQQ; IWM; SSO etc. are trading above the ATR level then just continue to ride the Long Position as no action is required.

However, if the market was to trade below the ATR Level and the underlying then assume a Short Position.

Below is an example of IWM/RWM (Russell 2000 index/Short Russell2000)

You are required to: 

(a) Flatten the underlying (IWM)position

(b) you are required to Buy and Go Long on the inverse (RWM)

As long as the underlying (IWM) is Short just ride the Long Position of the relevant inverse (RWM) position.

Once the Underlying (IWM) is to go Long, this means it trades above the ATR level, then you are required to take action

(a) Flatten your Long inverse (RWM) position and

(b) Go Long the underlying (IWM)  i.e. Buy the underlying.

Below is a section of the historical performance of IWM/RWM and the relevant data in the chart underneath.

Click to enlarge the image:

IWM/RWM historical performance

 

The Chart below is showing the performance (blue line) that our premium members might have experienced compared to the ETF returns.

Click to enlarge the image:

 




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Symbols

Below is a list of 11 best ETF symbols for a  portfolio with suggestions for the weighting to go Only LONG for Investors /Subscribers, the Allocation should be as mentioned herein below to achieve similar returns as on the tabs below.

 

 

QQQ  – Nasdaq 100 Index

20% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long PSQ

IWM –  iShares Russell 2000 Index

20% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long RWM

SSO – S&P 500 Index

20% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long SDS

XLB –  Materials Select Sector 

5% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long SSO or SDS

XLE  – Energy Select Sector

5% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long SSO or SDS

XLI – Industrial Select Sector

5% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long SSO or SDS

 

XLK – Technology Select Sector

5% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long SSO or SDS

XLP – Consumer Staples Select Sector

5% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long SSO or SDS

XLV – Health Care Select Sector

5% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long SSO or SDS

XLY – Consumer Discretionary Select Sector

5% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long SSO or SDS

GDX – VanEck Vectors Gold Miners

5% Take only the Long Signal of the ATR/ETF Sheet, when it goes Short, inverse and Go Long ½ the Position on GDXX

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Disclaimers:

Risk and Disclosure Statement:

There is a risk of loss in trading stocks, commodity futures, options contracts, and forex. This risk can be substantial and therefore investors should carefully consider their financial suitability prior to trading. Investors must fully understand the risks involved and must assume the responsibility for the results. Past performance is not necessarily indicative of future performance. In no event should the content of this website be construed as an express or implied promise, guarantee or implication by or from, Strategic Analysis Indicator or its affiliates, that you will profit or that losses can or will be limited in any manner whatsoever? Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed and is provided as a courtesy only. Our products are provided solely for educational purposes and in no way should the comments or strategies discussed be considered a solicitation to buy or sell commodity futures, options, securities, ETFs, Forex, or any other financial instrument. Therefore, we do not provide personalized trading advice to individual subscribers and you should contact your brokerage firm directly for assistance specific to your account risk tolerance and capital. Examples of historic price moves or extreme market conditions are not meant to imply that such moves or conditions are common occurrences or are likely to occur.

STOP LOSS ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A “LIMIT MOVE”, IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.

THE RESULTS SHOWN ARE BASED ON SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS THAT HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER. OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL PROGRAMS, IN GENERAL, ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

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2 thoughts to “Long Inverse Strategies For ETF Investments”

    1. Hi

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