How much capital is required to trade with SPA3CFD?
A minimum capital injection of $25,000 is required for SPA3CFD. Because leverage is added to the portfolio a smaller capital amount can be used in comparison to SPA3.

It is important to be aware that the smaller the capital base, the greater the potential leverage will be required in a portfolio. You need to be aware that this increases the risks.

Why SPA3CFD?
The development from SPA3 to SPA3CFD was purely based around new money management rules and tools. SPA3CFD is designed to increase exposure in a rising market by allowing customers to trade CFDs and decrease exposure in a falling market. The new rules disallowed SPA3CFD customers to trade CFD positions in a SPA3 high market risk. Further to this, SPA3CFD will limit position sizes taken in new stocks in a high risk market. This principle can help boost profits when the market is producing profits and protect capital when it is not.

Some of the other factors that helps SPA3CFD perform.
it has a researched statistical edge with a positive mathematical expectation;
it trades stocks and CFDs outside the ASX300;
it turns over trading capital around 5 to 6 times per annum allowing compounding of profits;
it has strict exit mechanisms to cut loss trades and allow medium-term profit trades to run;
it is an agile, nifty and street-smart trading philosophy;
it endeavours to reduce market exposure during HIGH risk markets and maximise exposure during low risk markets through sophisticated risk and money management rules.
The SPA3 hedge is designed to protect capital exposed to a falling market.

What do you recommend for an experienced trader?
Traders with experience should consider either SPA3 or SPA3CFD. SPA3CFD is for investors looking for leveraged type returns.

With the possibility of greater returns also comes increased risk you need to be aware of.

Does SPA3CFD prescribe to technical or fundamental analysis?
Through our research and trading experience we have found that the mechanical trading of our methodologies using objective, clinical and back-tested technical analysis signals provides SPA3CFD users with a researched edge.

Is there any subjectivity involved in SPA3CFD or is it entirely objective?
Totally objective, we wouldn't have it any other way! Subjective classical technical analysis, announcements, news and reports are ignored. These are termed as 'noise' and don't influence our objective, structured and 'robot like' actions.

The single common message from authors that have had extensive trading experience is that "to be successful in the markets you must achieve objectivity and consistency." You will find this message in books by Mark Douglas, Martin Pring, John Murphy, Stan Weinstein, Tom De Mark, Jack Schwager (and the majority of his Market Wizards), Larry Williams, Larry Conners, Welles Wilders, Joe Krutsinger, Jake Bernstein, Jeff Cooper, etc. Our methodologies help you achieve objectivity and consistency.

Can drawdown be avoided with SPA3CFD?
Mental strength is required to continue trading your method through the tough times of drawdown. This is even more true when making the decision to trade a product such as SPA3CFD. Those that get disheartened and withdraw become spectators when it gets tough are still spectators when the market rebounds. And nobody knows when the market will rebound when it has retraced. The market rewards those that stay in the game.

Due to the leverage nature of SPA3CFD it must be said that drawdown will be steeper than with SPA3. The maximum recorded drawdown in the SPA3 hEdge public portfolio is 20.71% compared to SPA3CFD public portfolio 59.60%. This is to be expected and we would recommend that investors choosing SPA3CFD have an advanced level of trading psychology.

The SPA3 hEdge can help reduce the drawdown in a portfolio. Executed in a SPA3 high market risk period, SPA3CFD
customers go about short selling the ASX200 index. This one trade helps protect capital in a falling market.

The other point is that you need to stay the course, follow your rules, grow your mental toughness, remain consistent and objective, keep your discipline, re-enter with new trades as the loss trades are weeded out with exit signals. All this will be just words to spectators on the sideline. It is only the players that will have a true understanding.

Your best achievements and deepest learning will always be the times when the market has tested you with a string of losses.

How much detail do you provide about the indicators, settings, rules, etc found in your methodologies?
The logic, rules, settings and tools are disclosed in thorough detail in our trading documentation

Due to the high intellectual property value of the SIROC indicator (the main momentum based indicator use in both SPA3 and SPACFD) we have made a business decision to not disclose this intellectual property (IP).

The technical criteria is supplied in our detailed documentation.

SPA3CFD can be as simple or as detailed as you choose.

The following material is covered in the SPA3 ‘Reference’ manual:
buy, sell, pyramiding, lightening signals and rules and other components which make up the trading system;
indicators used and why they are used (eg. SIROC, Relative Strength Comparison (RSC), ATRVE, Exponential Moving Average, Volatility Stop, etc);
volatility, signal type and market capitalisation parameters in determining individual stock risk levels;
the components in your customised SPA3 Trading Plan and risk profile;
SPA3 risk management for market and sector risk;
liquidity risk and how to customise SPA3 to trade stocks that trade fluidly according to the capital that you commit to the methodology;
Money management rules and how and why position sizes are calculated the way they are;
How many open positions to have at any given time and why;
Risk profile explanations for all capital sizes;
the researched edge itself including drawdowns, profit to loss ratios, profit ratios, expectancy and other statistics of importance;
Market risk strategies;
Regular processes, routines and mindset;
What to do in the event of a takeover, new listing, etc..

If this sounds 'over the top' to the uninitiated you should accept that these tools and rules are imbedded into the SPA3CFD system. If you are not the analytical type we would suggest learning and implementing the processes taught throughout our online education centre.

What are the primary indicators used with SPA3CFD?
The main technical indicators central to SPA3CFD are the (SIROC) Smoothed Indexed Rate of Change, (RSC) Relative Strength Comparison, ATRVE, which stands for Average True Range Volatility Exponential, and VSL stands for Volatility Stop Loss. Moving average crossovers on these indicators are also utilised as are mechanical overbought and oversold zones on the SIROC.

How does SPA3CFD determine the risk level of a given stock?
SPA3CFD uses a Matrix which includes the ATRVE (volatility indicator), market capitalisation and 'type' of entry signal to determine the stock risk level of a stocks as either low, medium or high.

So for example, a high risk stock would tend to have high volatility, low market capitalisation (eg. penny dreadful) and a 'volatility' entry signal. All of these parameters are defined thoroughly.

With SPA3CFD, what time do I buy and sell intra-day? Does it matter?
As SPA3CFD is a medium term methodology, the signals are mainly based on weekly data and some signals include daily data. Therefore, it really doesn't matter which time during the day that you execute your trades. In fact, intra-day trading is actually discouraged.

The key is to pick a time in the trading day that works for you and consistently act at this time. Whatever time you choose, it should be written into your trading plan and strictly adhered to with discipline. Importantly you need to execute at some time during the trading, after the entry or exit signal.

With SPA3CFD, are there liquidity issues with the same users buying and selling the same stocks at the same time?
No. There are two main factors as to why. Firstly, everyone starts their portfolio at a different time which means that all users will have different stocks in their portfolios and different signals will emerge day to day. This means that there will be instances, for example, when you need to buy a stock and have available capital and another user doesn't. There are also many different opportunities which surface week after week.

Secondly, the majority of stocks that generate SPA3CFD signals provide sufficient liquidity to not be affected by more than one trader executing. In reality, SPA3CFD private traders take up a very small percentage of market depth on any given stock.

Lastly, the SPA3CFD system has a 'built-in' liquidity risk parameter option that allows the user to specify exactly how much trading volume must be present for any given signal. Once this is set the user only trades stocks that meet their customised liquidity risk setting. This ensures that liquidity risk is managed and that the user is protected at all times.

What is the maximum amount of capital that one can trade with SPA3CFD?
Portfolio capital amounts up to AUD$850,000 (including leverage) can be traded depending on market conditions. During bear markets this 'upper limit' figure will decrease. This is due to the liquidity of the ASX market.

Users should be aware, of course, that as your capital grows, the number of positions to be managed will obviously increase demanding more of your time. If you have a larger absolute starting capital it is suggested that you run more than one portfolio. The SPA3CFD tool allows for multiple portfolios.

It is also suggested that no more than 15-25% of an investors capital be traded in a leveraged portfolio-SPA3CFD included.
.
What broker do you recommend for SPA3CFD?
Share Wealth Systems has an affiliation with Commodity Broking Services for SPA3 and SPA3CFD.
One of the major advantage CBS have over many of there online competitors is that they have the ability to provide additional lending on stocks. This lending is critical to accessing the cross collateralisation SPA3CFD requires.

There are 3 providers in Australia that offer this cross collateralisation:
Commodity Broking Service
StoneBridge
Macquarie Prime

The general rule is to find a broker that allows you to execute quickly and effectively at the lowest possible cost. In implementing SPA3CFD you will be opening and closing trades frequently as you act on the signals and do not need a full broking service that gives you advice as to when to buy, hold or sell.

Share Wealth Systems suggest you should always undertake your own research when choosing an execution broker.

Why are investing solutions like SPA3CFD so important?
Putting the SPA3CFD methodology aside, investing with a decision support system that emanates from the market removes your discretion, gut feel and hunches. Rather you invest with a set of rigorous rules and processes that are researched to give you an edge.

The key is to have a Trading System with a positive expectancy and integrated Risk Management, Money and Portfolio Management for that Trading System. This is precisely what SPA3CFD offers.

To be successful over the long haul we suggest you either design or acquire a methodology for the term you are trading. The reality is that developing a working methodology is not an easy task. Most traders do not have a solution and those that think they do, do not have one that works - one of the main reasons why most people fail to succeed in the market.

Developing a methodology requires unique qualities. Assuming that one did have the computer programming experience, trading background, tools and time to research, test and develop a methodology (a task only achievable by a very small number of people), the reality is that the chances of a successful outcome are low.

What if I go on a holiday and have open SPA3CFD positions?
SPA3CFD encompasses a trading system which gives technical signals determined by share price activity. If you go on a holiday with open SPA3CFD positions then there is no way of knowing beforehand whether or not your portfolio will require action while you are away.

The only surest way to be covered while you go on a holiday are to sell all your positions before you leave or take a laptop with you.

Some customers set automatic stop loss triggers with their brokers to protect themselves before going on holiday. Whatever you decide just make sure that if you leave positions open that you are prepared for the unexpected as anything can happen while you are away.

It should be said that these issues need to be addressed by anyone active in the market regardless of their approach to trading.

If I stop temporarily are there any costs to start up again?
There is a $187 reinstating fee for SPA3CFD which applies upon commencing the Share Wealth Systems service at a later date.

What are the minimum software requirements to run the SPA3 software?
Global Portfolio System and SPA3CFD are Microsoft Windows based applications requiring a minimum of Windows XP to operate. The software runs on both 32-bit and 64-bit systems, as well as Virtual Machines running Windows on Mac OS.