CXA Markets' caters to discerning investors seeking wealth management alternatives. The firm's investment strategies are designed to take advantage of every
market condition — Bull, Bear, and in Between — and our primary focus is always
on risk management.
Our algorithm highlights opportunities and risks, removing subjectivity and
emotion from the investment process. Thus, we only communicate three simple
words: Buy, Sell, or Nothing!
We don't opine on where stocks should go,
or become distracted by subjective valuation models. Instead, we analyze where the
market wants to take stocks, and position our trades
accordingly.
Intelligent investment ideas abound, but what
everyone cares about, regardless of well written speeches, is Positive Return on Investment — year in and year out.
In the interest of full disclosure, our strategy is aggressive and
doesn't fit everyone's personality.
|
Total Return
|
|
|
Nimble Growth is a short-term strategy designed to
generate frequent and small profits regardless of market conditions, while
taking advantage of the compounding effect.
The strategy triggers both long and short positions, and you can think of it as
your
"Personal Hedge Fund," while you have complete control over your accounts! As an option, you may
use Nimble Long and skip the short trades if you're not
interested in a margin account.
We recommend a minimum of
$100,000 in capital to implement this strategy, based on a round trip
commission/capital ratio of $20/0.25% (20/0.0025) per position, although
substantial profits can be accomplished with as little as $50,000. |
Three simple operational facts:
- Capital is allocated to a maximum of 6 investments at any given time, and 15% of
portfolio value is allocated to each trade, with 10% kept in cash. Portfolio value is the sum of cash and the
value of the open trades.
- We only use market orders, placed pre-market for execution at the open. We never
use limit, stop-loss or trailing stop orders. We never add to, or scale back, open trades.
- List of selected trades is delivered to members via
e-mail every weekday no later than
9:00 a.m. EST, except holidays. In the event
that no trades are selected
for a given day, a message is
still sent to inform members of the decision. Trades are also posted to the website and accessible via the member's
account.
|
|
|
If income is the goal, stock paying dividends, bonds, and CDs are the norm,
although the returns can be quite meager, even during good times.
Nimble Income is the alternative, and the only
modification required is a reset of the base capital at the end of every
quarter, removing accumulated profits — or "Nimble Dividends."
The annual return on investment will be lower than if profits continue to
accumulate and are reinvested, as is the case with the Nimble Growth strategy outlined above, but the return is superior to
traditional investments.
What about short-term capital gains tax?
Although we like to minimize the tax bite, we view taxes as the cost of doing
business, not an obstacle that must be circumvented. We don't put taxes ahead of
profit, because that's the equivalent of putting the cart before the horse. It's
easy to do the math with the returns shown, |
considering that the 2011 tax on dividends was 15%, and the highest U.S.
marginal tax rate on short-term capital gains was 35%.
You can use the tax calculator provided by efile.com.
|
|
|
|
|
|
|
*
HFI: The source of hedge funds data used is
Credit Suisse.
Using data that closely mirrors CXA Markets Nimble: Dow Jones Credit Suisse Core Long/Short Equity Hedge Fund IndexSM.
** Dividend yields shown are for S&P 500 ETF (SPY) and Dow Jones Industrials
Average ETF (DIA).
|