The trading system uses a computer algorithm to determine whether to take a Long (Buy) or Short (Sell) position in the Russell 2000 index.

On Buy signals it buys a positively correlated index ETF (like UWM). On Sell signals it buys a negatively correlated (or inverse) index ETF (like RWM or TWM).

Trading signals are usually sent by 6:30 am eastern time, giving you at least 3 hours to place your trades before market open at 9:30 am.

Unlike a lot of other systems, all the Buys and Sells conveniently take place at market open. This eliminates the need to constantly monitor your e-mail during the day.

The R2000 Timer is a proven investment system designed for serious, long-term investors for accumulating and preserving wealth through smart investing.

Remember, at 36% compounded annual return, $100,000 grows to $2,164,656 in just 10 years. The 36% annualized return is obviously not a guarantee but a goal for the R2000 Timer.

But to reap the rewards, it's important for you to stick with the program through all the inevitable ups and downs that are endemic in the stock market. The R2000 Timer is designed to protect your portfolio from large drops and drawdowns that occur due to bear markets.

However, it is not supposed to catch every small twist and turn in the market. So there will be times when the portfolio drops suddenly before its self-adaptive approach kicks in. That is why its important for you to be mentally prepared and be able to live through a 15-20% temporary drawdown, without abandoning the program at the worst possible time.

The R2000 Timer is suitable for aggressive investors looking for high reward by taking higher risk. However moderate and conservative investors may also use it by using proper position sizing, as explained below.

MANUAL TRADING
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Let's assume that you start with an account size of $10,000 that you've decided to allocate to the R2000 Timer system.

First, take a look at the Model Account Status in the lower right corner of the R2000 Timer system page -- http://r2000timer.collective2.com -- and make a note of the Total System Equity value.

Now divide the dollar amount you have allocated to this investment strategy ($10,000 in the example above) by the total system equity. For example, lets assume that the current total system equity is $15,000. Dividing $10,000 by $15,000, we get 0.66. That's your initial factor.

AGRESSIVE INVESTORS -- Multiply the number of shares we are holding in the portfolio for UWM by your initial factor (0.66 in the example above). So, if we are holding 500 shares of UWM in the portfolio, you will multiply it by 0.66 to get 330 shares.

MODERATE INVESTORS -- Take the initial factor and multiply it by 0.75. If your initial factor, as shown in the example above was 0.66, you'll multiply it by 0.75 to get your final factor, which is 0.495. So, if we are holding 500 shares of UWM in the portfolio, you will multiply it by 0.495 to get 247 shares.

CONSERVATIVE INVESTORS -- Take the initial factor and multiply it by 0.5. If your initial factor, as shown in the example above, was 0.66, you'll multiply it by 0.5 to get your final factor, which is 0.33. So, if we are holding 500 shares of UWM in the portfolio, you will multiply it by 0.33 to get 165 shares.


Auto-trading may be employed to make it even more easier to trade this system. See https://r2000timer.collective2.com/static/aboutAutoTrade.htm for details

AUTO TRADING
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To determine your scaling, follow these simple steps.

1. Take a look at the Model Account Status in the lower right corner of the R2000 Timer system page and make a note of the Total System Equity value.

2. Now divide the dollar amount you have allocated to this investment strategy (for example $10,000) and divide it by the total system equity. Assuming that the current total system equity is $15,000, dividing $10,000 by $15,000, we get 0.66. That's your factor.

3. (a) Aggressive investors should multiply their factor (0.66 in the above example) by 100 to get their scaling, which comes to 66% in this case. So you'll enter 66 in the first box and leave the second box blank when setting up AutoTrading.

(b) Moderate investors should multiply their factor (0.66 in the above example) by 75 to get their scaling, which comes to 49% in this case. So you'll enter 49 in the first box and leave the second box blank when setting up AutoTrading.

(c) Conservative investors should multiply their factor (0.66 in the above example) by 60 to get their scaling, which comes to 33% in this case. So you'll enter 33 in the first box and leave the second box blank when setting up AutoTrading.

Got Questions? Send them to us at support@r2000timer.com

Roger Williams
Editor, R2000 Timer
www.R2000Timer.com
Wealthquest International Inc.

P.S. Get your FREE Weekly Wealth Letter membership at http://WeeklyWealthLetter.com

P.P.S. If you see a "charge" in your credit card online account, please rest assured that it is just a "pre-authorization" that Collective2 -- our billing and trade tracking service -- has obtained from your credit card company. Your credit card will not be billed till the trial period is over. Please read a note about credit card pre-authorization from the founder of Collective2 below.


What is a Credit Card Pre-Authorization?
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Sometimes, alarmed customers call us and say, "Why have you charged my credit card? I subscribed to a free trial period, and I shouldn't be billed yet!"

Here's the answer: Don't worry. We did not bill your credit card. We simply asked your credit card company for a "pre-authorization."

Let me explain. Nowadays, credit card companies make it very difficult for both the customers who use their credit cards, and for the companies (like Collective2) that accept credit cards.

In order to prevent onerous credit card fees, Collective2 (and most Internet companies) are forced to do a "pre-authorization" of credit cards. That means, before we allow a free trial period, we electronically contact your credit card company, and say to them: "Customer John Doe claims that he is the owner of the following credit card number: 123456. If he chooses to pay for a subscription at the end of a free trial, and if we bill him for $X dollars, will you accept that charge?" Your credit card company / bank responds with a simple yes or no. That's a "pre-authorization."

Here's what's important. That is *not* a charge on your card. If you allow your free trial period to elapse, or you choose not to subscribe to the trading system, NO CHARGE IS MADE. Instead, the "pre-auth" disappears.

If you have any doubt, feel free to speak to your bank or credit card company on the telephone and ask them about the transaction which concerns you. They will confirm that no charge has taken place, but rather that Collective2 asked for a non-charge "pre-authorization."

Hopefully, this explanation has answered your question. However, we understand how sensitive the entire subject of credit card transactions can be. Your trust and confidence in Collective2 is crucial for our business to survive. Therefore, if you have any questions whatsoever, don't hesitate to contact us.

Sincerely,
Matthew Klein
Founder, Collective2 LLC
E-mail : help@collective2.com