Frequently Asked Questions


We have posted the most frequently asked questions "FAQs" from our members. If you have a question, please scan through our list. You may find other questions that you may have not thought about. If you are not clear about an answer or your question is not on the list, we invite your response and additional questions.

We have grouped our questions/answers into 4 categories for conveniency:
General Information / Trading Questions / Services / Site Specific Questions

General Information:

What are the various models used in your service and how many signals are produced in each?

We use three models (Aggressive Model, Moderate Model, and Conservative Model), each designed based on the frequency of trades and tolerance of risk. The model you select to use should reflect the amount of risk you are comfortable with and how often you would like to trade. For details, please visit our Models page.

Our investment firm is very interested in using your QQQ trading signals. How can we become a member of your service and use your signals for our clients?

Trading signals may be provided to Registered Investment Advisors (RIAs) who manage Assets Under Management (AUM). If you would like us to be a signal provider for your client accounts, you will need a contractual agreement with us. Our service fee is 50 basis points (0.50%) for Assets Under Management. Contact us for our licensing agreement. Broker checks with FINRA will be performed on all members.

Can you tell me more about buying and and selling ETFs?

ETFs can be flexible and easy to trade. Investors buy and sell them like shares, through a broker. Using ETFs, investors can also employ traditional share trading techniques, including stop orders, limit orders and margin purchases.

Trading Questions:

Which online broker should I use to buy or sell a stock?

Visit google.com and type in the key phrase "online brokers". Do a little research to find which firm is best suited for you. Commissions are reasonably low for most online brokers. Albiet, if you would like to have a professional money manage make the trades for you, we can direct you to one we highly respect.

What is short selling?

Short selling means to sell shares you've borrowed in hopes the price will fall. Here's how it works: you borrow the shares from your broker and sell them. Now you're paying interest on the borrowed shares, but you're also earning interest on the proceeds from the sale. Sooner or later, you have to replace what you've borrowed, but the hope is that the stock price will fall. Then you can buy back the shares for less than you sold them for, replacing what you borrowed and pocketing the difference. When you buy back the shares, this is called "buy-to-cover".

Should we use a market or limit order to buy or short a stock?

This is your choice. We suggest and encourage you to ask this same question to your financial professional. In general, you should always try to get the best price. But then again, you may not want to miss out on the trade. A small price differential between a limit or market order is really insignificant for the broad moves of the market. If you disagree with our timing or price, you may feel more comfortable in placing a limit order.

Regarding the Wash Sale Rule, is this still true that selling one exchange-traded index security at a loss and buying?

Selling one exchange-traded fund at a loss and buying another exchange-traded fund within 31 days will not trigger the wash sale rule, provided they're different exchange-traded funds. Selling 100 shares of QQQ, which tracks the technology ETF, at a loss and then repurchasing another 100 shares of the QQQ within 30 days will trigger the wash sale rule, meaning the loss would be disallowed. (You can adjust the basis in the new shares to reflect the loss, though, effectively letting you claim it when you sell the replacement batch.)

How does the Wash Sale Rule differ for Canadian investors?

The wash sale rule is a U.S. tax provision and applies only to persons paying U.S. taxes. In Canada, the Canadian Customs and Revenue Agency has a like rule, it is called "superficial loss", and works in a similar manner, except that it applies for 30 days, not 31 as in the U.S.

What is the difference between a long or short signal?

When the signal says "long", this means place a trade to buy the stock. A "short" signal means short sell the stock. If you do not wish to use margin as with short selling (i.e., borrowing stock from your broker in order to buy-to-cover at a lower price – meaning betting that the price of the security will decrease), you can simply remain in a cash position until the next buy signal is generated.

Services:

What is the purpose and objective of your trading system?

Our system is designed to consistently outperform the buy-and-hold strategy of investing on a yearly basis. Over the years, we feel our system has met our expectations and objectives.

How are your trading signals produced?

Our methodology uses proprietary algorithms and gathers statistical information from trading activity to forecast the price direction of QQQ. It is basically a mechanical system. Our system combines trend-following' and 'momentum' to identify tradable impulses. This method uses what we call 'reactive technical analysis'. Instead of trying to 100% forecast or predict the market's direction based on past market data as in interpretive technical analysis, reactive technical analysis is geared to reacting to the market's movements as soon as possible after they occur.

In what trading environment does your system perform well, and are there any flaws?

Our system performs very well when the markets are trending – either up or down, and on all time horizons (i.e., short, intermediate, and long). We estimate that the market trends either up or down for about 75 to 80% of the time. During these times are when, for the most part, we capture those moves and produce profitable returns. Regarding flaws: the system does not perform as well on short-term horizons when the markets whipsaw back and forth within a 5% range (i.e., topping patterns), and for short-term horizontal movement, as in times of consolidation (accumulation or distribution). In fact, no system can produce profits on a consistent basis during these times. We estimate the market may trade in this manner about 20 to 25% of the time. These are the times when our system is most vunerable to small percentage losses.

Once I have become a member, what will I receive through e-mail to let me know that a signal has changed; and secondly, will there be an explanation as to why the signal has changed?

At the moment a signal has changed, members will receive an immediate e-mail and/or sms text message with the latest signal change (see sample). The update will include the price and direction (buy long or sell short). In regard to the 2nd part of your question, our system is 100% mechanical, so there is no comprehensive newsletter to explain our position.

As soon as I become a member and visit the timing signals page, do I enter the trade immediately even if QQQ has already moved in a specific direction?

This is entirely up to you and your professional advisor for a final decision. If you like, it is sometimes best to sit out (hold cash) and wait until the next signal, especially if the market has moved significantly since our last signal.

Is investment news and other research data taken into consideration?

For the most part, the answer is no. We are always aware of the financial news, but this is not directly factored. However, the mathematical equations used to derive the indicators and signals, captures all data.

Site Specific Questions:

Who are your members?

Our members come from many countries in the world. We believe our members are professional investors, stockbrokers, money managers, financial planners and investment advisors, and individual investors. We also believe our members are those who have tried other investing strategies (i.e., day trading, buy-and-hold stocks and stock mutual funds, etc..) and have lost money through other strategies.

Does your company also trade the QQQ ETF?

We do not trade QQQ, since we do not want to be associated with any conflict of interest. We only use our methodology to trade government retirement funds. We believe our system provides a lower risk method of investing, as opposed to trading any individual stock, which is subject to higher risk, volatility, and many uncontrollable factors that can negatively impact stock price.

Can I join for a 6-month period instead of a year?

We currently do not offer a 6-month period. If we get numerous requests for this option, then we may consider this option in the future.

What is your privacy policy?

Our company is committed to protecting your privacy while using our site. This is explained in detail in our Private Policy page.

Does your company offer any free trial periods?

We do not offer any free trials. However, we do offer a 48-hour grace period. Meaning, if our system is not right for you, we offer a 100% refund.

Will your company manage my account?

At this time, we do not manage any personal accounts for our members, and probably will not in the future. However, we can direct you to a financial manager whom we respect or you can maintain your account with an online broker.

After I become a member is there confirmation of this?

Once authorization is approved, you will receive our confirmation response e-mail, which will include your member login information.

Who provides the signal changes?

Our chief technical chart analyst and developer of the service is Robert W. Dillon, Ph.D. Robert holds a masters and doctorate degree in the fields of Geology and Geophysics from the Missouri University of Science & Technology. He has over 30 years of experience trading the stock market and specializes in technical analysis. Robert has a vast amount of experience in interpretation of highly complex charts. He is also a master fingerstyle guitarist. The combination of his scientific and creative abilities with the stock market using technical analysis, gives him a pure analytical advantage over traditional strategies used by money managers. Due to his success in the financial world, he became semi-retired at the age of 41 and has been providing financial guidance to his customers since year 2001.

Robert holds the highest level of ethical standards and avoids any conflicts of interest. Robert has tested & experimented with almost every style of technical trading. He has extensively traded the market and experienced every imaginable technical and emotional situation. He has watched the markets change from cold calling to open-outcry and speed dialed phones to high-frequency trading and the dominance of the Algos, not to mention what goes on behind the scenes not available to the public. Through all of that, the greatest teacher of course, is the market itself. And while the speed and method of execution may change, the fundamental truths that underly technical analysis remain the same. Fear and greed reflected in crowd dynamics are always represented within a simple price vs. time chart.

Trading signals may be provided to Registered Investment Advisors (RIAs) who manage Assets Under Management (AUM) on a contract basis.

How can I contact the editor/technical analyst if I have a question?

All correspondences are done through e-mail. You can contact Dr. Dillon at rwd@qqqtrading.com

Once I become a member, can I change my email address in the future?

Yes, just send an e-mail to rwd@qqqtrading.com and include your old and new e-mail addresses.