SN-SOS High-Security Long-Short Autotrading (2017.01)

The SN-SOS autotrading system has been shut down until we can implement the following improvements.

1. 2-way DCA. DCA or “Dollar Cost Averaging” normally refers to a well-respected tactic of buying-in to investments in gradual stages. Our “2-way DCA” strategy is both to buy and to sell in gradual stages. This can improve our ability to reduce downturns during ultimately downward markets. Meanwhile, also to have less of a reduction of long term gains during ultimately upward markets.

2. Pre-open trading of S&P 500 instruments. In this new century, US-based investments are the most secure, but are immediately affected by trends in Asia and Europe, which generally operate on a 6-hour or 12-hour difference. Consequently, major price changes will often happen before the traditional New York trading hours of 9:30 am to 4 pm. However, most stock market investments have low volume during the pre-open trading hours of 7 am to 9:30 am.. This results in misleading prices, combined with a high “spread” between bid and ask prices. Consequently, online brokers do not allow “market” orders during pre-open trading. Autotrading platforms generally use “market” orders and simply are not designed for pre-open trading. Nor is it sensible for anyone to do any trading with low volume and high spread. However, SPY, the extremely popular S&P 500 ETF, almost always has high volume and negligible spread. XIV, an ETN based on S&P 500 futures, usually has a tolerable spread after 7:30 am. Therefore, in order to hope to dodge any sudden stock market crash, at least half of invested funds must utilize the pre-open trading of S&P 500 instruments.

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