The stock market is in a constant state of flux, both up and
down. You can profit by trading in investments that make money
in either direction. If you are making an investment because you are
expecting to profit if the market goes up, this is a bullish or Long
trade. If you are making an investment expecting to profit if the
market goes down, this is a bearish or Short trade.
Until recently, the only way someone could make a profit when the
market went down was by shorting a stock/index, buying puts and/or with
futures. Starting a few years ago, however, there has been a new class
of mutual funds created which go up if the market goes DOWN. These are
generally called inverse mutual funds.
You can read below about both types of funds at the link entitled
Ways/vehicles to trade Merlin signals. No matter how you invest (short,
long, inverse, enhanced), you need to read information to become aware
of the risks you are taking. It is very important that you understand
what stop loss orders are and how they are entered and/or cancelled.
In addition, you need to understand shorting and/or using short mutual
funds and/or short ETFs. There are FAQ pages from your stock broker's
website, ProFunds website, and/or Rydex’s website that you
should
thoroughly read. Also, use Google or Yahoo! search for expressions like
‘shorting stock’ to get further info. In other
words, you
must still do your own due diligence and make informed trading
decisions.
When you click on subscribe, there is now an extensive tutorial with
screen shots which detail steps to successfully subscribe, bearing in
mind possible concerns with Internet Explorer security.
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Q. How to check
on the latest signal?
You can log in and check at the TMG site. The links for
preliminary signal and current signal are at the left side panel of the
web page. Also, as a double check you can go to TMG Forums
- Daily Signal LOG dated today.
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Q.
What do
Signals (NDO, EOD, Bull/Bear, Long/Short, mean?
This system was primarily intended to be and end of day (EOD) system
where you will take its signal and execute the trades at next day open
(NDO), i.e. at market open on the next trading day.
Some subscribers are limited in what they can do with their retirement
accounts and/or Rydex/ProFunds accounts and have requested a
preliminary signal late each trading day. The purpose of the
preliminary signal is to alert them so they can trade (if they choose)
before the 1600 ET close, achieving in advance what would be the buy at
the open that the system was intended for, but with the understanding
that infrequently the signal can and does change based on late market
trading action. So far, the preliminary signal has changed three times
since going live in late October. The signal is not final until after
the close and when all data updates are in.
These signals can be to Buy, Sell, Short, Cover, or go to Cash. In
addition you will receive occasional general discussion and commentary
as to Stop Losses and money management strategies. The frequency of
trades should minimize the need for Stop Loss orders, but each investor
should set Stops on every trade consistent with their own level of
comfort and tolerance for risk.
Trade notifications are sent automatically from TMG as soon as the
trades are entered, but we are also posting the preliminary signal, the
EOD signal, and any pending trades on themerlingroup@yahoo.com, which
is only viewable by subscribers. If you are receiving a personal email
notification, your privacy is protected because all messages are sent
BCC to the group. As stated previously, the daily emails are a courtesy
for the benefit of those desiring to trade pre-EOD, but if you desire
not to receive it for whatever reason, just let us know and we will
drop you from distribution. The final signal and any resultant pending
trades should be posted on the themerlingroup@yahoo.com NLT 1900
ET
daily. It is each subscriber's individual responsibility to check the
status of the signal for any changes and suggested trades.
The EOD signal will always
be an unequivocal Short or Long, but for those desiring more insight into the
signal, our notifications will also indicate the signal description. The
signal score (numerical component) can range from ~ + or - 40, but there is no
direct correlation between the score and that signal’s historical success
rate. Bull or Bear mode is just a short term bullish or bearish bias
determined by the use of a Price Percentage Oscillator and the signal
description will indicate which, plus the numerical component as follows:
As a prudent money management strategy, we still recommend that stops
be set on every trade you enter to limit losses should the market turn
severely against the trade, at whatever level you feel comfortable.
Stop loss orders cannot be done for mutual funds, so if you are using
Rydex or ProFunds mutual funds, you would ignore the stop order but use
it as a mental stop, watching the price of QQQQ. (See the FAQ
further below for more discussion of stop loss orders.)
Below is a chronological order of how you might see signals and what
they mean. The email you receive and the current signal section
at the TMG site both explain what action you should currently be taking.
Starting from Cash position. BUY, (bullish-expecting market to go up) SELL
(end your bullish position in QQQQ by selling the shares
you bought in Buy to Open. SHORT (assume bearish position, expecting market to go down)
Short QQQQ.
End SHORT Buy to Close, ‘Cover’ the QQQQ Short
position. ETC, ETC.
In recent years, new types of mutual funds and ETFs (exchange traded
funds) have become available that track the indexes. However, mutual
funds have one large drawback when used with the Merlin system. The
large majority of them trade only at the end of the day, so you will
not be able to get in ‘at the open", as is intended. Some
Rydex
funds allow a 10:30 am entry. For this reason, there are preliminary
Merlin signals before each day's close for people who want to work
around this limitation of mutual funds by placing a trade today,
instead of at tomorrow's open.
You can find a further explanation of the kinds of investment vehicles
that can be used with Merlin at the "What to Trade" link in the
frequently asked questions section (FAQ).
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Q. What are ways (vehicles) to trade using
the Merlin (TMG) signals?
The Merlin trading program is based on statistical and historical
analysis of the NDX index, and issues signals for trading the Nasdaq
100 Trust ETF (Symbol: QQQQ), both long and short. ETF stands for
exchange traded fund. It can be bought and sold as often as you wish,
like a stock.
Bearing the above in mind, today’s markets provide several
options on how to trade, using these signals:
ETFs can be traded at any time.
QQQQ:
The Nasdaq 100 ETF known as QQQQ. This is an exchange traded fund
which may be bought long or sold short any time during the day. It is a
basket of stocks that represent the Nasdaq 100 index.
ProShares:
(look for anything titled 'QQQQ' at
http://www.proshares.com/)
In 2006, ProFunds released a series of new
offerings called ‘ProShares’. These are ETFs which
trade
just like any stock, all day long. These include enhanced or leveraged
funds, whose goal is to deliver twice the daily movement of the
underlying index. For the Nasdaq 100/QQQQ, the ProShares offerings are
PSQ (1X Short), QLD (2X Long), and QID (2X Short). To go 1X Long, you
would just buy the QQQQs. The use of the 1X and 2X Short funds allows
you to trade Short in accounts that would otherwise be restricted, but
they are subject to the 3 day settlement rule, so your flexibility is
still somewhat limited. Mutual funds trade at 10:30 am and again at
4:00 pm.
ProFunds and Rydex both offer 2X leveraged funds, but
being funds, they have limited tradability (i.e.
once daily for ProFunds, at EOD, and twice daily for Rydex).
The
lower fees are offset by not being able to trade at optimal
times. The system is designed and tested for EOD signal/NDO
trade. We do provide a pre-EOD
“preliminary” signal
that some members use for trading at or near EOD, but
there is an added risk of a signal change due to late market trading.
That has happened perhaps 20% of the time. Most members just
trade the straight QQQQ either at 1X or on margin, and many, including
myself, prefer the 2X ETFs, QLD (Long) and QID (Short).
Rydex
Funds (under the Rydex fund finder drop down menu see OTC,
Inverse OTCDynamic OTC and Inverse Dynamic OTC)
http://www.rydexfunds.com/index.shtml
These funds only trade at 4:00
pm.
ProFunds:
See dropdown menus for any fund which includes OTC in its
name. Like Rydex, they include regular bull & bear funds as
well as
'ultra' funds, which attempt to deliver double the daily movement of
the index. http://www.profunds.com/
Options
on QQQQ and futures
on the Nasdaq 100 are also available.
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Q.
Should I use stop loss?
As was noted, at 3% (1X) Merlin will get you out of the trade 99 out of
100 times before the stop is hit, but it somewhat depends on how much
tolerance you have for drawdowns and what vehicle you are using, since
the 2X funds/ETFs will get there a lot quicker. Our testing
has
shown that the optimal stop %s are actually much higher, but again,
they are so seldom hit in the back test that they are
a non-issue.
We recommend that each person set a limit consistent with their own
level of comfort and tolerance for pain. Our testing shows that using
the EOD/NDO trading strategy, ~ 3% is nominal. The frequency
of
trading makes them almost a non-issue, i.e. the system will normally
get you out of a losing trade before a stop loss will.
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Q. What if I
just joined, should I wait for signal change?
Comment
from Capt J It is a personal decision, but in
order to get off on the right foot,
*personally*, I would wait for a signal change. It is the nature of
trend following systems that you normally have to give a little of your
gain on a winning trade back as the market changes over at the end of a
signal, and if you get in late, that can make what is still a nice gain
for most a loser for you. However, that said, there is also the danger
that a current signal could go on for several more days, so there is an
element of risk in either strategy, but by remaining in Cash, at least
you are not losing.
Comment
from positiontrader: If I miss a signal, I will
often still
trade the next day but reduce the amount that I trade unless the price
goes opposite the signal direction and the signal remains the same,
then full exposure.
Comment
from positiontrader: If I happen to miss the
start of a new
signal, it depends on what happens the next day. If we move strongly in
the direction of the current signal, I will get in at a reduced
%(25-50% of trading capital). If we move against the direction of the
signal but the signal does not
change, then I will get in 100% in the long position and up to 50% in
the short position when the 8 day ema is above the 64 day ema.
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Ira
account trading limitations & suggestions
IRA accounts usually have a 3 day cash settlement rule if you are
trading ETFs like QID or QLD. This means when you sell a long, you
can't switch right over to a short for 3 days, defeating the timing
precision which is Merlin's goal.
One option is to only trade half on each signal so that you have half
of your cash available on the next signal.
Another option is to use one of the mutual fund families and just
exchange back and forth from their long fund to their short fund. This
can be done immediately if you are moving within only one fund family
like ProFunds or Rydex. There is also Direxion as well. (sp?)
However, you then get into the problem of needing to take action by or
before 4:00 pm using the preliminary signal in order to get the next
day’s price. You are, therefore, hoping the signal does not
change after the market closes.
An alternative to this is Rydex' 10:30 am trading, the results of which
are in another link in the Ibox at the board.
Lastly, not all IRAs and/or fund families are alike and this is only a
general overview. The final, best source for your diligence is your
broker/fund administrator.
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Investing
terms you may see in regards to Merlin (TMG) signals trading
ETF
- ETF stands for exchange traded fund, as in proshares qid and qld. The
primary claim to fame is they can be traded at will all day, any day
the market is open.
PPO
The Price Oscillator is an indicator based on the difference between
two moving averages and is expressed as either a percentage or in
absolute terms. The number of time periods can vary depending on user
preference. RSIA
technical momentum indicator that compares the magnitude of recent
gains to recent losses in an attempt to determine overbought and
oversold conditions of an asset. Generally a reading of 70 is
overbought and a reading of 30 is oversold. VIXIntroduced by the CBOE in
1993, VIX is a weighted measure of the
implied volatility for 8 OEX put and call options. The 8 puts and calls
are weighted according to time remaining and the degree to which they
are in or out of the money. High readings indicate excessive
fear
(buy zone) and low readings indicate more complacency (sell). The
Arm’s Index [ARMS]Developed by Richard
Arms, Jr. in the late ‘60s as a
short-term trading indicator. It has since been studied and used for
longer-term market analysis. The index uses four measures from a
specific exchange to gauge underlying market strength including the
number of advancing issues, the number of declining issues, the volume
for advancers and the volume for decliners. The calculation for the
index is as follows for any given period: [#
Advancers / # Decliners] [V
Advancers / V Decliners] Where V = Volume.
Many
charting applications provide Arm’s Index data for the NYSE,
AMEX
and NASDAQ under the symbols TRIN, TRINA and TRINQ, respectively. As an
alternate symbol, check ARMS.
These can be graphed as $trin and $trinq at www.stockcharts.com ADX-DMIAn
indicator developed by J. Welles Wilder for identifying when a
definable TREND is present in an instrument. That is, the DMI tells
whether an instrument is trending or not. The scale for the
DMI
is from 0 to 100. The average directional movement index (ADX) is a
Moving Average of the DMI.
CCI
- Developed by Donald Lambert, the Commodity Channel Index
was
designed to identify cyclical turns in commodities. The assumption
behind the indicator is that commodities (or stocks or bonds) move in
cycles, with highs and lows coming at periodic intervals. Lambert
recommended using 1/3 of a complete cycle (low to low or high to high)
as a time frame for the CCI. (Note: Determination of the cycle's length
is independent of the CCI.) If the cycle runs 60 days (a low about
every 60 days), then a 20-day CCI would be recommended. For the purpose
of this example, a 20-day CCI is used. EPC -
Equity Put Call
RatioIn recent years, this has
come to be
regarded as a more
reliable contrarian indicator than its predecessor, the overall put
call ratio. When it was invented by Dr. Marty Zweig over 25 years ago,
index options did not exist or play a major part in the numbers. In
January 2005, the CBOE even removed QQQQ options from the ECP because
they also were being used by the larger players and were no longer a
contrarian indicator. The equity only PCR is based on just small
players’ stock options. The original usage by Zweig was a
gauge
of fear as seen in high put to call ratios.. This can be graphed as
$cpce at www.stockcharts.com ETF =
Exchange Traded FundAs
opposed to normal mutual funds, ETFs can be traded anytime the stock
market is open, just like any stock. Two examples for use with Merlin
are ProShares symbol QLD (long 2X bullish) and QID (short 2X
bearish).
Support
is the price level at which demand is thought to be strong enough to
prevent the price from declining further. The logic dictates that as
the price declines towards support and gets cheaper, buyers become more
inclined to buy and sellers become less inclined to sell. By the time
the price reaches the support level, it is believed that demand will
overcome supply and prevent the price from falling below support.
Resistance
is the price level at which selling is thought to be strong enough to
prevent the price from rising further. The logic dictates that as the
price advances towards resistance, sellers become more inclined to sell
and buyers become less inclined to buy. By the time the price reaches
the resistance level, it is believed that supply will overcome demand
and prevent the price from rising above resistance.
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Ex-dividend dates for Proshares
These
funds can and do issue dividends, which then affect the price of those
shares on the first ex-dividend trading day. This is normal procedure
for any/all stocks which issue dividends. You can get more data about
this here.
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Complete Signup process review
There is a subscribe link in the left hand section of this website. It
will walk you thru the process of subscribing with a credit card.
Your TMG
subscription is not active until the payment is
approved/accepted, and if your account is not active, you cannot access
any of the subscriber only links. Access to the TMG Forum is
controlled separately for the time being, but that will eventually be
linked to the subscription process also.
Once you are subscribed through the TMG site, we will manually set you
up
for the message forum here and notify you of that via e-mail.
Once you are signed up through TMG and have received your forum log on
info, you can log in and see preliminary signal and/or EOD signal
through
the links at the left.
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Subscriber Ideas about trading
options in
and during TMG signals
Please note these are opinions & observations from subscribers,
intended to illustrate trading ideas. Options
present the
potential for significantly higher gains while at the same time
presenting significantly higher risks. It is each
subscriber’s
responsibility to perform due diligence on investing vehicles they see
mentioned here. Your broker would have information and also you can do
a yahoo or google search on 'options risk'. Among the many
terms
you should be familiar with are in the money (itm) , at the money (atm)
or out of the money (otm), as well as understanding when options
expire, strike prices, time premium decay, and what happens if you hit
expiration date holding an in the money option.
fast_eddies
outlook: Since we are considered the dynamic duo...here's
my trade practices. Generally, I go about two months out and trade the
nearest in the money option. (In March 45 puts right now) That
minimizes the time
decay effects if the signal lasts 3 or 4 days. And, like you, I've
watched the gaps, up and down, for better entry/exit. Usually enhances
profit a bit. Closing positions early, around the close after receiving
the prelim or
because I felt that was all there was to be made, has gone both ways
for me. Sometimes better profit, sometimes leaving money on the
table, but no losses as a result. Probably, left more on the table than
I gained, but you will not go broke taking a profit.
Thoughts on entering and exiting positions…
2/17/07 - I have yet to enter a position precisely at the open. I use
limit orders and like to see how things are trading before pulling the
trigger. Plus, the traditional 5 to 10 cent spread on bid and ask,
could be 5 to 10% of the option cost which would decrease profits if a
market order were used (more on the recent penny pricing of options
later).
The great majority of the time, the initial market movement or gap has
been against the signal, so waiting a bit allows a better entry. Didn't
always get the optimum, but typically better than the open. As someone
else pointed out, the market tends to return to the opening price
during the early going.
I've exited positions in three ways, 1) The next morning after the
signal, 2) Right after receiving the prelim signal, and 3) When I
figured the market had given me enough for this run (those have been
some of the 30% plus gain days). I have left money on the table several
times and likewise enhanced profit several times as the market moved
against the signal before it ended. I've not kept exact track, but I
suspect I've left more on the table than I've gained, but not by much.
All of the early exits have gained over 30%, I think one could have hit
50% if I had stayed until the end, but that is hind sight. The market
can turn against you just as easy and although the signal is still
profitable, that 30% can turn to 10% relatively quickly. The 30%
trades compound your account very nicely and there is no need to be
greedy. Just smile and say "thank you, Merlin".
While in a position I typically keep an eye on the qqqq 5 minute and 60
minute charts when I can be near a computer. Often you will see the 5
min chart bounce at a certain support or resistance level one or more
times and retreat. If that point of the qqqq corresponds to an
option price that would yield 30% or better, I'll put in the sell order
so as to be able to catch it if it spikes there again momentarily.
I will also use support and resistance levels from the 60 min chart,
especially if I can't be on a computer that day and enter a sell order
(again for a good percent profit).
Having exited a position early, only once have I reentered during the
same signal, and that was only because the market returned to the point
where the signal initiated. I think I do this due to my growing
confidence in Merlin to produce winning signals, as well as the
fear that I could turn in a losing trade while the signal still
produced a winner. There is always another signal.
Using CCI(10) in my trading…..Gleno on the ihub SPY
Technical
Analysis board pointed this one out to me. When the CCI(10) cuts across
-100 from below or +100 from above, the target becomes ema (10), and
that it works in any timeframe. I can't explain the reasoning
behind it, only that it appeared to work. I back tested it to 1999 with
daily data on the qqqq's. Took the closing price on the day of the
crossover to go long or short (depending on the direction)
and then used the high or low of the following day to resolve the
trade. For 80%+ of the trades, it gave a profit, average return of
1.25% (this includes the losses) using the q's straight, long or short.
There were 285 trades over the period tested.
I traded this practice for a while last fall using daily charts and was
doing pretty well, using options about 15-20% gains on a couple trades,
a couple break evens and small loss cause I missed the HOD. Used it on
a weekly crossover, it went against me, chased the losing
trade with more $, pulled out the "hope" indicator and watched
everything go away due to time decay. Typical fast eddie history.
Using the CCI(10) on 60 min and daily charts, I'll make a judgment as
to if market action during the next period, hour or day, is likely to
be in favor of the signal direction or not, and add this to the
decision making process.
One major thing I've learned is not to stay with a big time losing
position hoping that it will improve…..they only get worst.
Take
the hit and move on, keeping losses to a minimum. The best thing now is
that with Merlin you know you've got a 60% chance of winning the next
time.
satorino's
outlook: if you plan to use options with the signal, i.e.
QQQQ options, i would go for well in the money options, and for no less
than 10 days to expiration. this is in my opinion a prudent general
rule. Furthermore, if you have the time and inclination to wait to pull
the
trigger on those days when merlin says to go one direction, and the
market really goes the other way at the open, then the results can be
really great. I like to do that a lot, although a couple of times i was
stupid enough to try and beat merlin to the signal and went long or
short way too early, and paid for that.
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Autotrading
This feature is not currently offered through the TMG website.
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General
Overview
The
Merlin (TMG) signals are derived from a 21 year study of the NDX
(Nasdaq 100) index. Their initial application is for an end
of
day signal to be acted on at the next trading day open, in a vehicle
tied to the NDX. The most well known would be QQQQ, but there are also
2X funds based on the NDX as well as 2X and 1X ETFs. Any
discussion you see on the use of options and/or futures represents a
higher level of risk that you as the investor, need to investigate
thoroughly, as does the use of margin.
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Forum
Access
For those who have moved over and been given
access to the Forum, your
username is the same as your site login, but the password is different.
Please consult the separate email that I sent to each of you
personally. That is why I sent the message, i.e. so that you would know
how to log in. Please be careful to note anywhere you
should be using CAPS.
The TMG site and Forum logons are not the same. Moreover, your Forum
access must be set up manually, and it takes a finite amount of time to
do that. We will get you set up as quickly as we can, but due to other
pressing matters and the availability of someone to do it, it could
take up to an hour or so, so you don't need to send us repeated emails
about not being able to sign
in to the Forum. Also, the initial password for the Forum is generic
and will be sent to you in the follow-up email to the one that is sent
automatically by the Forum software. Please read and follow the
instructions as provided.
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Wash
Sale Rule
The IRS has very specific rules on capital
losses. By knowing and
understanding the wash sale rule, you can make sure you do not
inadvertently run a muck of the law.
The wash sale rule defined - Put simply, the wash sale rule prohibits
an investor from claiming a capital loss for tax purposes if the
investment in which the loss originated is repurchased within thirty
days. (the frequency of merlin (TMG) trades makes this rule
apply
directly to you.
It was put in place by the IRS to prevent investors from selling a
losing position to take a loss on their taxes, then rebuying the stock
right away.
There are software programs available to help you do the wash sale
'roll forward' bookkeeping' and your tax preparer should be the last
word on this subject.
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Preliminary
Signal
There is only one official Preliminary Signal,
and that is issued
around 3:30 ET. It is for the benefit of those who trade mutual funds
only at specific times of the day. The normal method of
getting the signal is to goto the TMG website (here).
The thread Developing Signal is a courtesy provided by Capt J for those
of us full-time day traders or compulsive market watchers who cannot
tear ourselves away from the market. It is not "the" preliminary signal.
The preliminary signal is posted at a link of its own on the left panel
of the website screen along with the "current" signal, which is posted
after the close.
You can also check in the TMG forums for the developing signal thread.
Always make sure you are on the right date and bear in mind this can
change during the day. Its posted as a courtesy to people who
sometimes trade during the day.
For anyone still using C2, you can 'log in', go to the TMG page, then
select 'forums' to see the prelim, remembering it's posted at approx.
3:30 est. This only applies until the transition has been completed to
the TMG site. Subscribers who elect to stay at C2 will still get the
signal email generated at end of day.
We will extend access to the Forum on the TMG site to the remaining C2
subscribers when the transition is completed, at which time we will no
longer post the prelim or EOD signals on the C2 TMG Forum. C2
will continue to send the auto-notifications as new trades are entered.
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Subscription Terms and
Restrictions
The monthly subscription rate posted is for
individual traders
only, and by subscribing here you are indicating that you understand
and agree to these provisions. Your privacy will be strictly protected,
but in order to subscribe to TMG you must provide your real name, not
just initials or any other assumed identity. We reserve the right
summarily to deny subscriptions to non-individuals and to reject or
cancel any subscription obtained under fraudulent means, including
seeking legal remedies if necessary and appropriate. If you are a money
manager, hedge fund, institution, reseller, or other commercial entity,
please contact us at admin@themerlingroup-inc.com
to discuss options.
You agree not to reproduce, duplicate, copy, sell, resell or exploit
for any commercial purposes, any portion of the TMG Service, use of the
service, or access to the Service. When you subscribe to TMG, you agree
not to forward its contents, publicly distribute them, or resell them
without permission of the trading system provider.
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Forum Time Zones
In order to coordinate the time stamps you see
on TMg forum
posts you may need to set the time zone appropriate to your local are
as per below details. Change your local settings under Member Center
in order to get
time readings appropriate to where you are loctaed and thereby see the
posts with time stamps to make them more useful to you. Log
in to
TMG Forums , Member Center - Personal Forum Preferences - Time
Settingsis at the top of the main forums page.
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Beginners Guide to the
Merlin Trading Signals
What is the Merlin
system and how would you use it?
We are a signal service for active traders, so if you have not done
active trading Long and Short, you should read a good reference book on
that first. Basically, you need a brokerage account and sufficient
investment
capital that commissions and fees are not an excessive percentage of
your returns dollar-wise. When you use a brokerage for buying
and selling, they charge you a commission for each buy and sell. Our
fee is currently $80/mon, but that was an introductory rate that
will increase to $120/mo on 1 March. Brokerage commission are
typically $10/trade, and the system trades ~ every four days on
average, so a "round trip" (open and close a position) would be
$20. As you can see,the costs could get to be excessive if
you
had a small account balance. In addition, you will also be charged
taxes at the end of the year
based on your gains and they will be calculated as short term gains.
There is a link for our disclaimer statement at the top section of this
page, please read this thoroughly.
Please read the rest of this Trading FAQ section for more
details about Merlin signals.
Our service provides trading signals for when to buy index funds based
on which way our computer model indicates the highest
probability
of movement. (up or down). You then place trades with your broker
ending your prior trade and
initiating the new one. As mentioned above this system trades
frequently, on average every 4 days. The final signal for what to do
the next day is usually available by 6pm eastern
time here at this website. You will need reliable internet
access
to take advantage of this in a timely manner.
There are several ways you can trade these signals and they are
detailed here in this section under the heading of What To Trade.
The list below is in order of risk level
Least risk:
Trading QQQQ long and short (buy qqq long for buy signals and sell qqqq short for sell signals) Next level of
risk: Trading QLD long and QID for shorts (qld is a 2X long fund , QID is a 2X short fund) Beyond that
you can trade options and futures based on the Nasdaq
100 index (NDX). These can have much hgher levels of profit,
accompanied by much higher levels of risk.
If you are new to investing, it is very important that you thoroughly
study the risks and benefits of index trading, your
brokers
rules for using their service, as well as reading all the
information here at this website.
Trading the stock market entails risk of losses regardless of what
program or method you are using. Please read over the statistics about
this program that you find on the main page of the website.
At TMG, you get full access to the TMG website, the active signal links
which you can access 24/7, the Forum (representing the aggregate
expertise of the TMG community, i.e. all you guys), direct email
notifications of the preliminary and final signals, and a last charge
money back guarantee, which for new subscribers is essentially the same
as a 30 day free trial.
At C2, you get autotrading capability (if your
broker is supported and you want to trade only QQQQ), access to the
complete system trades list since going public, email/IM trade
notifications on days when there is a signal change, and no free
trial/money back guarantee.
Margin usage and short selling both involve extra risk, be sure to read up on the risks.
Futures
tradingcontains
substantial risk, is not for every trader, and only risk capital should
be used. Any form of trading, including options, hedging and spreads,
contain a high risk. Margins are subject to change without notice.
Futures and Options can provide returns far in excess of the
underlying index that they track. The investor needs to also realize
that losses can be magnified in the exact same manner. When
buying put or call options, you can lose up to 100% of your investment.
Depending on how much leverage you use with futures, it is possible to
lose much more than 100% of your investment.
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________________________________________________________________________________________________________________________ Loss Statistics:
3/7/07 - When was the last ( or last 2 for that matter ) 5% loss on the long side ?......
Over the 21 years, there have been 8 Long losses of 5% or more. The
last one was on 9/25/01 (in the days following 9/11, and was the
closing loss for
a trade that at one point was down 14% just three days before), and the one before that was on 10/5/98.>