A Personal Investing Note...

One of the questions I get asked from time to time is, "Do you invest your own money using your trading system?" There are many variations of this question that I've heard...

• "How much of your own money do you put in your system?"
• "Do you use Covestor.com?"
• "Do you trade real money with your trading system?"
• "What portion of your portfolio do you trade in this system?"

And a few others. The short answer is this: I keep virtually all of my liquid assets available to this trading system. Now... that might sound like a slippery answer (like what does available mean) to the question, so let me explain.

If you follow the system you will know that we spend a huge amount of time in cash. In fact, my money is actually in the market only about 1/4 of the time. But that's the system as I've tested and trade it. Sometimes prices are perfect for going "all in", and sometimes we have a lot in cash. As I write this I am 100% in cash, which is not unusual, especially during less volatile times. That's what I mean by available.

Trading is not the only way I invest. I have real estate, and other long term investments. But when it comes to investing my cash I practice what I preach... not because of any principle, but because I can't think of a better place to keep my cash. Bottom line, when I have extra cash it goes into my trading account for this system.

Good Trading...