Just wanted to touch base on where we are with the manual shipments. At this point it looks like we will be shipping by next Monday and by Friday all should have their copies. I will also be sending out an electronic version out to you all to get you started as soon as we have the final printing-proof back from the printers.
Once things calm down I will put together a FAQ on some of the most often asked questions. One that I am asked most often is why the histories only go back 2 years. That was the first time the double and reverse indexes had the liquidity to trade and subsequently had options available for trading. On the SPY as an example we have history going back to 1993, but the double indexes didn't come into play until much later. I wanted to make sure that we caught the end of the bull market, the bear market slide and the recent recovery so that we had data for these critical periods.
I am also asked if the returns in the history tables are compounded...THEY ARE NOT. These are a simple sum of the trade by trade gains BASED on the UNDERLYING Etf. The gains using the double and reverse double ETFS are far greater and of course this doesn't include the use of options. You can trade this with any vehicle, but I myself only trade options so I was looking for an efficient way to trade thedouble inverse indexes. We will add others as we go along..I have historys for 112, but for most folks that would just be too confusing.
I have made a little summary chart below which shows the difference between simply trading the underlying index long or short and using the ETF or double ETFs and options. The difference is quite remarkable.
I have been working on this for the last 4 years, with forward trade tracking for the last year and a half and will have completeindex vs index options vs double index vs double index options comparison tables. The figures you are looking at ARE NOT compounded.
For the SP500 Here are the results from November of 2007 at the market peak to Present using various vehicles. Full tables are included in the manual. Starting Portfolio basis is $1000
SP500 SPY SSO/SDS P/C Options SSO/SDS
Buy & Hold Long/Short Double SPY Options
$638 $1960 $3240 $11,820 $12,482
Now by way of explanation, (short version). The Double and Revers-Double ETFs have a GOAL of delivering 2-1 over the underlying index on a DAILY basis. As you can see, we don't actually get a double, but around 165% return. That is higher than most pundits would expect for longer than 1 day trades. For our purposes its not too shabby. The real money is in the options (simple calls and puts for the SPY or just Calls for the SSO/SDS). Remember these are non-compounded gains. On first glance it would seem that you do almost as well on the SPY options as you do on the SSO/SDS options, but the SPY options cost about twice as much as the SSO/SDS meaning your return on investment is cut in half. You get twice the number of contracts for the same price, so you can double the figures you see here in real net dollars.
The rules are completely disclosed in the manual which will begin shipping next week. To do it yourself you will need
advance/decline data for each of the components within the underlying ETF you are tracking as your "trigger"
and you will need unweighted price data. Essentially building a subset of the ETF without the influences of
capitalization and making an even playing field.
Of course we will do all the work for you for less than $25 a month, which we would prefer so you just have a once a day check in for any signal changes. We will also take care of notifying you 30 minutes before market close if you wish to match our results.
Remember that the current RoundTable and Lifetime subscribers will have access for the signals for the balance of their current subscriptions. After we begin shipping this will be a SEPARATE service offering at $299 per year. If you extend or subscribe before we begin shipping it will be included free in your Roundtable package.
Pitbull RoundTable - All Services + ETF Signals:
Regards,
Henry Ford
