SYSTEM CONCEPT:





- Signals Buy/sell are generated by a sophisticated computer program that I developed and I have called MasterMind. It analyzes a specific set of frequencies of Put/Call ratios and their volumes. For each day, MasterMind performs a calculation of probability and shows careful in what direction to take a position in the market.

Why analyze the Put/Call ratios?

- The basic system is simple and logical: OPTIONS = DETERMINES THE FUTURE MARKET MOVEMENTS. The market is controlled to 80% by institutional investors. The latter use options and their positions tell us what are the odds that the market is influenced upward or downward. The levels of Put/Call ratio is fantastic in my opinion to anticipate market movements on a daily basis. MasterMind trade stocks that are correlated to SP500.

- You wondered why some days the market is increasing while the economic news is bad and vice versa? ... The money options often have an influence far greater than the news themselves. My observations tell me that the economic news will modulate the magnitude of a bullish or bearish, but not initiate it as does the Put/Call ratios. Therefore, Mastermind is 100% Put/Call ratios in its analysis.

- Even if you do not want to use MasterMind ETF Timer to make your trades, it can help you improve significantly your timing of the market by continuing to use your own way of doing things.





WHAT TO EXPECT & POSITION MANAGEMENT :





1-
First, I am always aware that you put your money in the market by following my signals, so I act like if your money was mine! Second, I aim to always finish the month with gains. It is main priority to keep the drawdowns on low levels with steady profit increase and long-term capital growth.


2-
The system trades the market in both directions: long and short with ETFs stocks(and reverse) having great correlation of SP500.


3-
The average duration of a trade varies between 1 and 4 days. It generates about 8-10 trades a month and about 120 trades a year


4-
System is low maintenance and very easy to do the trade by yourself. This is an efficient system with few trades at times.


5-
The system cut the losses at 3% max.


6-
The position size of each trade is automatically determined by the number of days with same consecutive signal.


7-
Where possible, the goal is to take profits on winning trades gradually in 3 steps. It may happen in some situations that I take a gain faster than the original objectives if the entry point was less good.


8-
For this system, we only trade ETFs stocks: SSO(ProShares Ultra SP500 long) and SDS(ProShares Ultra Short SP500) on US market. For canadian traders on TSX , you can use: HSU(BetaPro SP500 Bull Plus-Long) and HSD(BetaPro SP500 Bear Plus-short). But it is also possible to make their transactions for other stocks that represent the market as the Nasdaq and ETFs that will have quite the same movement as the SP500.


9-
In the vast majority of cases, the signals of the system MasterMind will be sent at the end of the day or at open.


10-
Only one position is open both on the market, it's easier to follow as well.


11-
MasterMind does not veritable "average down" or add to losing positions. This system will not freeze your account


12-
It is easy to adjust the size of the trades to conserve the same proportions as those made in Mastermind.


13-
Please note that unlike most of the trading systems on Collective2, I don't use margin in MasterMind. That way all of my subscribers are able to duplicate my results in their own trading account, whether it's a cash or margin account.


Francois
Mastermind system developer