THE CFD SYSTEM BASED ON THE PROVEN SPA3 EDGE

The objective for creating SPA3CFD was to turbo boost returns from the already established and proven SPA3 trading system. When a medium-term trend is signalled, if available, a CFD could be traded instead of a stock. By trading both CFDs and stocks in the same portfolio, controlled leverage is achieved across the entire portfolio.

There has been no change to the SPA3 signals which have remained the same for SPA3CFD. But what has changed is the money management and risk management rules and tools. When a SPA3 low market risk is signalled, SPA3CFD will allow CFD positions to be added to the portfolio. When a SPA3 high market risk is triggered, SPA3CFD will only allow for stocks to be traded. SPA3CFD clients increase exposure in a rising market by trading both stocks and CFDs and yet protect capital in a falling market by trading only stocks. This principle has lead the SPA3CFD public portfolio to out-perform the ALL ORDS index by over 80 compounded percentage points per annum from the 30th of June 2008 until the 8th of October 2009.

The combination of SPA3 Risk Management and Money Management rules, modified for leverage trading in SPA3CFD, will ensure that the amount of capital exposed to the market is tuned to the prevailing market conditions. This plays a major role in minimising drawdown and maximising portfolio growth when rising out of drawdown to new equity peaks.

This is achieved by the trader controlling the level of portfolio leverage and risk rather than the CFD provider dictating the overall margin to value ratio of a trader's portfolio. The SPA3CFD trader chooses to trade their CFD portfolio at an overall leverage factor of 1.5, 2, 2.8, 3 or even 4 rather than at 10 or higher. Sophisticated SPA3CFD Money Management algorithms manage the leverage of your portfolio.

Included in the SPA3CFD package is SPA3 hEdge.

SPA3 hEdge is a simple shorting strategy that helps to protect capital in a falling market. Like all Share Wealth Systems products the hEdge has a mathematical positive expectancy, or positive EDGE.

The implementation of the hedging strategy occurs during signalled SPA3 high risk markets.

It must be said that the hedging of the portfolio is up to the individual. SPA3 un-hedged has performed exceptionally well over the life of the Share Wealth Systems public portfolio and some investors may decide that shorting the index adds a further level of maintenance to their portfolio. Share Wealth Systems are happy to provide the hedging tools, documentation and training which are included in all SPA3 and SPA3CFD packages.