What to do when you get a new MIPS "Signal Change"
1) Buy Signal: - if you are in cash, buy the ETFs of your choice, but - if you are short, "cover" your short position and then buy
the ETFs of your choice.
2) Short Signal: - if you are in cash, short the ETFs of your choice (or buy the
inverse ETFs*), but - if you are long, sell your long positions and short the ETFs you
choose (or buy the inverse ETFs). *Using Inverse ETFs not recommended with the MIPS1 model.
3) Cash Signal: - if you are long, sell your positions and stay in cash, but - if you are short, then "cover" your short position and stay in
When to trade a new Signal All timing systems send out trade signals every time their models change positions (long, short, cash). - in all cases, the trade is to be made by its members on the very next opportunity.
MIPS is an end-of-day (EOD) timing system
- our "Signal Change" emails go out after the market close on each day that MIPS issues a new trade.
At lease 98% of these emails are sent between 5pm-midnight EST time on the day of the signal change:
- upon receipt of these MIPS emails, the very next opportunity to trade is on the next day's open
In the 1-2% of times when signal change emails are sent between midnight-9am eastern time:
- the very next opportunity to trade is on the that day's open.
And in the extremely rare times when MIPS signals are sent intraday, MIPS members are to:
- trade as soon as possible after receipt of the email (intraday before the close or on next day's open)
On weekends, new trade signals emails may be sent anytime after the market close on Friday until
before the market opon on Monday.
- regardless of when a signal change email is sent over the weekend, the trade is to be made on
Monday's open (because Monday's open is always the first opportunity to trade a new signal issued
after the close on Friday).