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Aggressive
(Long & Short 2x Leveraged)The aggressive or leveraged strategy is by far the most popular approach for individual market timers. This is because of the extremely high gains made available along with the ability to get increased exposure without actually having to buy on margin. All advertised performance of the TimingLeader.com model is calculated using the aggressive strategy.
Leveraging is a technique used by institutional investors to increase exposure to a specific index (in our case the NASDAQ-100) in an effort to amplify returns without increasing the amount invested. This is achieved through various instruments such as futures, options, swaps, margin, etc. While the potential returns are essentially doubled, so is the loss if one is wrong. To put it simply, a leveraged strategy would be employed by a more aggressive investor, with the goal of doubling the daily performance (or the inverse in the case of a SHORT signal) of the NASDAQ-100 (NDX).
For the TimingLeader.com subscriber, an aggressive strategy can be employed by purchasing shares of a leveraged mutual fund that tracks the performance (or the inverse in the case of a SHORT signal) of NDX. The Rydex Dynamic OTC 2x Strategy Fund (RYVYX) and Inverse Dynamic OTC 2x Strategy Fund (RYVNX) would be suitable for this approach.Example:
If you decided to follow our signals using an aggressive strategy, you would buy shares of RYVYX when a LONG signal is issued. RYVYX seeks to achieve 200% of the daily performance of NDX; basically, if NDX goes up 1%, your return would be roughly 2%.When a SHORT is issued, you would then exchange your shares of RYVYX for shares of RYVNX. The goal of RYVNX is to achieve 200% of the inverse of the daily performance of NDX. Now whenever NDX drops by 1%, you are making 2%.
Rydex Investments is not the only mutual fund distributor that provides leveraged funds; other leveraged NASDAQ-100 tracking mutual funds would return similar results. TimingLeader.com uses the RYVYX and RYVNX closing prices to calculate performance of our aggressive strategy.
