ETF Ultimate

  • July 18, 2011
  • TradingMarkets Editors

Exchange-traded funds (ETFs) were once a small niche product used by a few investors as a substitute for mutual funds. Now, ETFs are one of the fastest
growing segments of the financial markets industry and are used by everyone from individual traders to hedge fund portfolio managers.

There are over 1,000 ETFs now available covering almost every conceivable market sector, sub-sector, asset class, and country. The Machine allows you
to take advantage of this ever-expanding universe of ETFs and trade without taking on the stock-specific risk associated with equity trading.

The growing liquidity of ETFs makes them a perfect choice for traders. Here are just a few of the advantages of trading ETFs:

  • ETFs are safer than equities – you can minimize your stock-specific risk
  • ETFs are more predictable – many strategies have >70% win rate
  • ETFs provide many trading opportunities in both rising and declining markets
  • ETFs are the investment vehicle of choice for professional traders

The ETF Ultimate Strategy Package provides you with the ability to choose from over 12,000 strategy variations. You will have access to every ETF swing
trading strategy in The Machine and every ETF trend following strategy within The Machine (both long and short).

By adding the ETF Ultimate Strategy Package to the Machine Basic you will have access to over 24,600 ETF swing trading strategies (average hold period
of 5 days) and over 6,000 trend following strategies (average hold period of 3-9 months).

The trend following strategies buy ETFs that are in long term up-trends or short ETFs that are in long term down-trends. This allows you to profit from
longer term bull market runs like 2010 and bear runs like 2008-early 2009.

With the ETF Ultimate Strategy Package you can diversify your portfolio by combining long strategies, short strategies, swing trading
(short term) strategies, and longer term trend following strategies.

By combining diversified strategies, you can build portfolios that perform well in any market environment – up markets, down markets, or even sideways markets.

You can also diversify by selecting strategies for specific groups of ETFs such as country ETFs, leveraged ETFs, US-only ETFs, and many more.

The Machine contains strategies that trade less frequently and strategies that trade more frequently. You can choose active ETF strategies that scale
into positions and have very high historical win percentages. Or you can choose more aggressive swing trading and day trading strategies to help
maximize your returns.

By blending strategies with different capabilities and objectives, you can build portfolios of strategies that are more consistent.

When the ETF Ultimate Strategy Package is added to The Machine Basic you get the entire Machine Basic feature set including the ability to combine
strategies into multi-strategy portfolios, backtest on both a strategy level and a portfolio level, unique portfolio risk analysis tools, daily signals,
and the capability to execute your portfolio trades using the ConvergEx institutional-quality trade execution platform.