Two Corner Timing: FAQ

Frequently Asked Questions *

What does Two Corner Timing offer?

Our market timing signals are our entire product - you get our view on which way the Nasdaq 100 is expected to move tomorrow. After signing up, you will be notified of all signal changes and have access to the members-only "Current Signal" page that tells what the next signal is likely to be.

What does Two Corner Timing not offer?

We will not attempt to tell you why the market is likely to move in a particular direction or offer any commentary about the market or the world at large. We also offer no personal investment advice or recommend any specific transaction. Such advice can only be given by investment advisors, as governed by the SEC. We are a market newsletter, as governed by the First Amendment. As such, we can only offer our general opinions. That those opinions come from a mechanical model changes nothing.

Subscription Questions ...

How much does your service cost?

For the first month, nothing.
Subscriptions are $50 per month after a one-month free trial. Annual subscriptions are $500 per year, also after a one-month free trial.

Are the signals available to professional money managers / investment advisors?

Yes. In order to share our signals with anyone outside your immediate family, you need a professional account. Contact us for details.

Do you offer managed accounts?

Yes. If you'd rather not do all the trading yourself, we have a partner who can do it for you. See the Managed Accounts page for details on setting up an account to be traded on your behalf.

How do I cancel my account?

Canceling an account is as easy as it should be. Simply follow the link on the "My Account" page. You may also cancel via PayPal, or just ask.

Can I get a refund?

If you cancel within the trial period, you will not be charged. After that, all service will be billed in advance. While you're free to use the service for the remainder of your term, no pro-rated refunds will be given for partial months (or years).

What is your referral program?

If you refer a client to us, you will receive a free month of service if they stay on past the trial period. They just need to mention your name when they create their account, and you will be credited after they make their first payment.

How will I be billed?

We use PayPal to handle all of our subscriptions (except managed accounts). You must have a PayPal account, but that's easily done. When you sign up you will be redirected to PayPal to authorize the subscription. You will not be charged until after the trial period ends. After that, PayPal will charge the subscription price via whatever method you set up with them.

Trading Questions ...

What do the signals mean?

All of our signals are related to the Nasdaq 100 index (NDX). A LONG signal indicates the index is expected to rise and you should buy something that reflects the performance of the NDX. A SHORT signal indicates the index is expected to fall and you should either sell short something that reflects the performance of the NDX, or buy something that reflects the inverse performance of the NDX. A CASH signal says nothing about the future direction of the index (somewhat different from a prediction that it will stay still), and recommends that you close whatever LONG or SHORT position you may be in at the time. The signals do not indicate how strong the predicted movement may be, or how long the signals may last.

How will I be notified of a new signal?

New signals are generated every day at market close. You will be e-mailed new signals at that time, or you may choose to receive a preliminary signal before then. Preliminary signals may not agree with the final signal but may be more convenient for trading. You may elect to also receive e-mails even when the signal doesn't change. The current signal is also displayed on the site when you're logged in, as are candidates for the next signal. The "Current Signal" page in the members' section has more detailed information about the upcoming signal.

When should I trade a new signal?

Generally as soon as practical, and never past the morning after the signal is issued.

What stocks or funds do you recommend?

It's not our place to recommend specific securities, but see the How To Use page for some of the suitable possibilities.

I've just subscribed. Should I trade immediately on the current signal, or wait until the next change?

If a signal doesn't change, it's considered to have been re-issued, and is just as valid as when it was "new". So it's best to immediately enter the signal given at the close, whether it has changed or not. But if you choose not to, that's fine - this is a quick system and a new signal is bound to come very soon.

Should I bail out of a losing signal?

No. Even signals that are currently losing are more likely to be right than wrong in the future. If there was a consistent advantage to exiting losing signals in the middle, it would already be part of our model. It isn't.

Do you employ stop losses? Should I?

Part of our model is a "feedback loop" on the current signal, but that's not the same as a regular stop loss. Stop losses only hurt performance and should not be used.

I see the signal is going to trade today. Should I trade early?

The information provided on the projected signal changes only applies to the close, and should not be acted on until then (or somewhat before then for practical trading considerations). Even when the next signal is known to be different from the current one (which is sometimes the case) you should wait until the close.

What do I do if I've missed a trade?

If you miss one day, just follow the signal the next day. If you have the chance to follow the signal mid-day, you'll have to use you own judgement, taking into account trading cost and whether it would prevent you from properly trading a later signal change.

I'm trading at the next day's open and the market has already made a sizeable move. Should I sit this one out?

Backtests of opening trading have shown that you're still better off following the signal when you've "missed" an overnight move in your favor. Likewise, you're better off following the signal when you've "escaped" an overnight move that would have been against you. Either way, ignore the change and just place the trade.

I'm not comfortable with shorting. Isn't it risky?

Shorting, making money when the markets are down, has gotten a bad rap. It's seen as riskier than a long investment, as well as somehow nefarious. While shorting individual stocks does have some unique risks, a short position in an index like the Nasdaq 100 is actually less risky than a long one. The market tends to drop faster than it rises, and you never hear about markets crashing up. Still, if you don't want to go short, no one's forcing you - just expect less than half the performance.

Questions about the timing model ...

How are the signals generated?

Each day after the market close, our propietary model is run on price and volume data from the Nasdaq 100 index. This generates a set of possible signals for the next close, which in turn depend only on the closing price of the Nasdaq 100. This is a 100% mechanical method, and is never overridden by human meddling.

How often does the system trade?

This is a very active model. The main "Quick" signal changes on average every three and a half days, or roughly 72 trades per year.

How do I know Two Corner Timing is as good as you say it is?

Since 2006-09-19, our "Quick" signal has been tracked by TimerTrac.com, the industry standard for verifying market timing signals. More recently, our other signals have also been tracked. TimerTrac receive their signals the same way our customers do, and they don't allow anyone to back-enter trades or change posted signals. So you can be sure that everything you see there is what our model was recommending at the time. When you shop for a timing signal, keep an eye out for the "TimerTrac medallion" that we display proudly on the sidebar of every page. Whatever a site may claim, you can be sure its TimerTrac record doesn't lie.

How much of your performance is based on actual trades, and not just backtesting?

Our model was developed in during 2005-06, and was "fixed" in the summer of 2006. We use the first TimerTrac submission date as the official point at which the system moved from "backtested" to "live".

I see that 2007 was a bad year, then you took off in 2008. What did you change?

No mechanical system is perfect, and 2007 was indeed a hard year for many market timers. Still, it's a good thing when even a bad year offers a small gain. This turned out to be only a temporary lull in our model's success; things picked up again in 2008. The change was entirely in the market - nothing was done to the Two Corner Timing model to account for this.

So you never change your model?

Right. We're proud of our published track record, and it would be meaningless if it were the record of anything besides the signal we sell. There's always the possibility of finding some new ideas in the future, but that would only lead to offering a new signal, not changing the one we already have.

Why are there so many signals? Which one should I use?

In the interest of providing our customers with the most complete choices for their investing needs, we offer different variations of our timing model. They are all ultimately derived from the same basis as the "Quick" model that's the first thing you see on our home page. See the Our Model page for details on the different variations available. For those who can't decide on a single signal, we offer "Zero Five": a blend of a variety of signals.