Collective2

Invests in un-leveraged ETF's, and occasionally in individual stocks, of leading sectors of the markets utilizing primarily technical analysis and intermarket analysis for investment decisions.


An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index. ETFs are attractive as investments because of their low costs, tax efficiency, and stock-like features


Our strategy can be summed up relatively easy.

1. We only invest in un-leveraged ETF's and occasionally individual stocks.

2. We primarily utilize technical analysis to make investment decisions. In finance, technical analysis is a security analysis discipline used for forecasting the direction of prices through the study of past market data, primarily price and volume.

3. We also utilize intermarket analysis in our decision making. Intermarket Analysis is the analysis of more than one related asset class or financial market to determine the strength or weakness of the financial markets or asset classes being considered. Instead of looking at financial markets or asset classes on an individual basis, this type of analysis looks at several strongly correlated markets or asset classes such as stocks, bonds and commodities.

4. We believe in letting our profits run but attempt to avoid large drawdowns.

5. We are not hyper traders and our average holding period will usually run about 2-4 weeks.

Our methodology has changed over the last few months and the resulting improvement in performance is reflected in the more recent results. Previously we were more engaged in selecting individual stocks and trading more frequently. We had also previously utilized sentiment in our trading. It is our belief that the change in methodology will result in improved performance and reduced drawdowns.

Since the transformation to only un-leveraged ETFs on 07/09/2012, the maximum drawdown has been 10.62% and 9 out of 10 months from August 2012 to May 2013 have been profitable.

Please feel free to contact us if you have questions.