Objective: Double the return of the S&P 500 by using 2x leveraged ETF's in Bull cycles, and 2x leveraged Inverse ETF's in Bear cycles

Strategy At-a-Glance

Generate capital growth 2 times greater than the S&P 500

Use 2x leveraged ETF's in Bull markets​

Use inverse 2x Leveraged ETF's in Bear markets

How It Is Done

The Leveraged Index model is based on using a rules-based, quantitative analysis investment strategy that is highly opportunistic and focusing on 2x Ultra ETFs, along with high momentum upward trending stocks.
How do we minimize risk

To minimize risk in the Leveraged Index Strategy we pay close attention to what the market is telling us, and we are not afraid to go to cash during transition markets.

Historically our drawdowns at any given time in this model has been between 15%-22%.
  1. Above all else, the model is data-driven. It relies on historical data and not forecasts or guesses or future estimates of market conditions.

  2. The model is designed to hold up-trending 2x index ETFs in bull markets; hold more cash in transition markets; and, hold major index inverse (2x) ETFs in bear markets.

  3. The model is primarily focused on the 4 major indexes: S&P 500, Nasdaq, DJIA and the Russell 2000, but has the option to put capital to work in other 2x sector or commodity-based ETFs.

  4. In bull-trending markets, the model's investment goal is to be fully invested in 4 or more strongly up-trending 2x index ETFs, with a capital allocation based on which indexes are outperforming. The stronger the trend of the inverse ETF, the more capital can be allocated to that ETF.

  5. In Neutral markets, the model will not be buying any ETFs.

  6. In bear-trending markets, the model's investment goal is to be fully invested in 4 or more strongly up-trending 2x inverse index ETFs, with a capital allocation based on which inverse index ETFs are outperforming. The stronger the trend of the inverse ETF, the more capital can be allocated to that ETF.

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