CycleSpreads/CycleETF

 



CycleETF FAQ

Q: Is your system based on an algorithm of some kind?

A: No. This is discretionary trading based on a method that's been in place for many years. Also, we can't teach a machine to look for areas of support/resistance that may coincide with a signal in our conventional indicator(s). We acknowledge there are not many of us left, but this is the way we like it.

 

Q: How does a typical trade go?

A: We generally look for a target near key support or resistance on the day of the trade to take down half the position assuming it goes in our favor. The rest of the position is managed according to how the market behaves in the next hours or day(s). It's not unusual to see us trade 2 half positions. If the trade goes against us, we monitor the trade relative to the metrics we used to enter. If those metrics no longer apply, we may trade for a loss prior to our stop. Our hard stop is typically the prior swing high or low for the index..

 

 

Q: Can I trade other instruments besides ETFs based on your recommendations?

A: Of course. Customers are welcome to use futures, options, or whatever instrument they desire. Just remember that the risk defined for our trades may be excessive should you be using products like futures contracts for example, which use inherently more leverage than ETFs.

 

 

Q: Why do you only recommend SPX-related ETFs?

A: The discipline we use for assessing swing trading opportunities is uniquely tuned to the S&P 500 index. Other indexes may provide more volatility and 'bang for your buck' but we prefer this method.

 

Q: I notice you miss some significant swings. Why?

A: There could be several reasons, but the most obvious is that our method did not produce an opportunity. Because we're looking for higher probability setups, we are going to miss some big moves. Hindsight is 2020 as they say, but we stick to our discipline. Another reason could be that we may be near the perceived end of a short trade, for example, and the reason we exit is because we see a potential turn taking place to the lond side. Given that our capital is tied up in the settlement of the short trade, settlement of the short trade, settlement rules (T+3) may cause us to miss the resulting reversal to the upside. That does not happen often.

 

Q: Why can't I pay for this based on the size of my account?

A: That would imply that we are acting in a manner that's inconsistent with a trading newsletter, and could subject us to further regulatory oversight, which we are unwilling to do.

 

Q: Can I have multiple accounts autotrading your selections?

A: Please contact us - we are willing to consider reasonable requests.

 

Q: I manage a pool of assets for clients. Are there any restrictions for using your service?

A: Yes. Please contact us to discuss the terms of our service for pooled asset subscribers.

 

 

Q: Do you offer training for your approach to swing trade?

A: No, sorry. We offer the results, not the recipe. Perhaps CycleETF is a good compliment to whatever trading you do on your own or thrrough other providers. Swing trading isn't really conductive to trading rooms.

 

Q: How would you describe your overall approach and philosophy?

A: We use a fairly rigid set of tools to examine risk and market entry. Support and resistance is more important to us after we get into a trade in terms of taking profits. We really dislike any form of market predictions. Predicting the markets is impossible. We trade what we see, and use Elliott Wave to provide market context only. Elliott Wave has proven ineffective in our opinion as a reason to get in and out of trades, but is great for characterizing a market.

 

 

 







Contact Us

CycleSpreads

St. Louis, MO

 

Email : info@CycleSpreads.com