Posted by robbief111 on 24th of Jul 2020 at 12:05 pm
Matt,
Thanks for the DVT webinar. We appreciate the work that you
put into that. I have a few comments and a question with regard to
managing a 401K by the use of DVTs.
Just saying.
Mutual fund orders execute on the daily close. Many 401Ks do
not allow stops to be placed - especially for mutual funds. If a
DVT is triggered near the close and you cannot get an order placed
to sell in time, any subsequent mutual fund sell order will execute
at the close of the following day. That's okay, because the
intention is not to trade these things in a 401K.
Another difference between the old Monthly system and the DVT
version, is that daily sideways market action will cause whipsaws.
They may be few, but they are inevitable. The Fidelity Police, for
example, do not take kindly to round trips of less than 30 days -
they can freeze your mutual fund trades after a warning. A few of
these quick trades within a month and many of us will give up. You
have previously mentioned the possibility of an additional weekly
DVT system. It could also trigger multiple trades, but there would
be far fewer of them.
Re-entry Question
I may have missed this during all of the discussions.
Will you provide a subsequent re-entry signal after
each DVT stop is triggered?
I see one on the DVT web page on 6/30/20. How will we be
notified?
I think you'll be notified on that DVT page on the website and
likely in a daily newsletter as the DVT system is mentioned early
in each newsletter each evening (assuming you're not able to be on
the blog during the day; I think Matt said he'd call these out
during the day if the entry/exit points are hit).
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Webinar
Webinar Video
Posted by robbief111 on 24th of Jul 2020 at 12:05 pm
Matt,
Thanks for the DVT webinar. We appreciate the work that you put into that. I have a few comments and a question with regard to managing a 401K by the use of DVTs.
Just saying.
Mutual fund orders execute on the daily close. Many 401Ks do not allow stops to be placed - especially for mutual funds. If a DVT is triggered near the close and you cannot get an order placed to sell in time, any subsequent mutual fund sell order will execute at the close of the following day. That's okay, because the intention is not to trade these things in a 401K.
Another difference between the old Monthly system and the DVT version, is that daily sideways market action will cause whipsaws. They may be few, but they are inevitable. The Fidelity Police, for example, do not take kindly to round trips of less than 30 days - they can freeze your mutual fund trades after a warning. A few of these quick trades within a month and many of us will give up. You have previously mentioned the possibility of an additional weekly DVT system. It could also trigger multiple trades, but there would be far fewer of them.
Re-entry Question
I may have missed this during all of the discussions.
Will you provide a subsequent re-entry signal after each DVT stop is triggered?
I see one on the DVT web page on 6/30/20. How will we be notified?
I think you'll be notified
Posted by 24kau on 24th of Jul 2020 at 12:32 pm
I think you'll be notified on that DVT page on the website and likely in a daily newsletter as the DVT system is mentioned early in each newsletter each evening (assuming you're not able to be on the blog during the day; I think Matt said he'd call these out during the day if the entry/exit points are hit).