When the SPY trading system generates a signal to open a trade
and then this trade is closed on the same day, a mutual fund trader
remains in cash.
When SPY trading system generates a signal to open a trade and
this trade is not closed on the same day, a mutual fund trader buys
corresponding bullish or bearish funds.
The following Rydex funds are used to follow SPY signals:
RYTPX funds are bought when the system generates a "Short" signal
for SPY;
RYTNX funds are bought when the system generates a "Long"
signal for SPY.
The trading results do not include interest earned while
in a cash position.