Frequently Asked Questions

  1. What are the trading goals and how does the system work?
    Our goals are simply to beat the SP500 market index with minimal additional trading risk and minimal additional trading activity. Our general strategy is to hold a long position when the market is climbing and to hold a short position when the market is declining. Our system performs well when the market decidedly moves in one direction for a long duration. Drops generally occur when the market is volatile and sideways. Our system is not fit for hitting a quick home run. Zig Zag North works well for patient investors who invest for the long run.
  2. What is the history of this system?
    The initial foundation was developed in 2003 and was tweaked over several years. The model has been back-tested to 1986 and the parameters were locked in August 2007. The managers have been actively investing the system in their personal accounts since 2007. Back-tested performance history is available on this site back to 2006 when QLD and QID were officially launched by ProShares. Trades and performance were officially tracked for commercial purposes beginning June 2008.
  3. What type of brokerage account is required?
    Any basic brokerage account may be used. We trade ETFs which trade like stocks. Margin or option privileges are not required.
  4. How many positions are held at once?
    Only one position. When a switch is recommended, members may simply place an order to "sell to close" the current position and "buy to open" the recommended ETF.
  5. Which funds do this system use?
    Only two exchange traded index funds are used, QLD (2x long Nasdaq 100) and QID (2x short Nasdaq 100). The funds are liquid and actual orders fill within a small percentage of historical quote databases.
  6. How long is the average position?
    On average, this system switches between QID and QLD seven times per year. It varies from year to year but investors may need to switch positions every one to two months. Although, there have been times when switches occurred after holding a position for one week.
  7. How much capital is required for a brokerage account?
    Generally, we suggest $10,000 initial capital to trade and more capital can reduce the percentage losses from commissions and membership fees. See the financial analysis for help analyzing trading systems.
  8. Is this system set up for auto-trading?
    We are working with several auto trade brokerages now to set up connections but do not currently have a broker relationship established.
  9. Is auto-trading required for this system?
    No. This system is one of the lowest maintenance systems available and does not require auto-trading for fills. Members may place market orders overnight and see orders filled in the morning after the recommendation.
  10. Do you limit your membership size?
    Yes. Our system is limited to a fixed membership base. However, we do not invest in low-volume options where we risk over-reaching the open positions. Our ETF positions generally have much higher trade volume than our membership base would have an impact.
  11. Is there a way to contact someone personally?
    We are available through email on the contact us page.