Frequently Asked Questions

If your question is not answered below, please submit your question to us.

1. What is your basic investment philosophy?

My goal is to significantly out perform the broader market.  Specifically, I want to help people make good profits with reasonable levels of volatility.  I view myself as a conservative investor who believes that the old days of "buy, hold, and pray" are behind us.

To be successful in today's market environment you need to have a trading system that really works and then follow it with no second guessing.  I want to try to remove all of the emotion from my trading decisions.  All of us are being torn between two powerful forces; fear and greed.  I want to be a "robo investor" who follows his systems and does not let my emotions get in the way.  I know if I follow my systems, in the long run I will accomplish my investment objectives

2. If these systems are so good, why do you share them with others?

I manage 16 different portfolios for various family members on a pro bono basis, so the last thing I need is an investment-oriented, non profit hobby. I believe in the merits of each of my trading systems and I charge fees for using those systems. I use the majority of those fees to offset the costs associated with the vast array of software, hardware, subscription, and data feed services, that I use in my market analysis. On a more altruistic side of the coin, I feel good about being in a position to help other people make good profits through a sound disciplined approach toward investing.

3. What is the System Developer's background?

GDW Investment Systems, LLC is the developer of all of these systems. Click "SYSTEMS DEVELOPER" to learn more about the Developer's profile.

4. Can you give a brief description of each of your various systems?

I currently offer six systems for trading Stocks, Exchange Traded Funds (ETFs) and Mutual Funds.  Rebound Stocks is a swing trading system that trades both Stocks and ETFs.  My newest system; Rebound Solo is currently my best performing system.  It trades only one stock at a time.

• Rebound Mutual Fund Trader: Trades Exchange Traded funds (ETFs) with the objective of always holding the best performing fund in its respective peer group. I have been trading this system for over ten years and have significantly out performed the market every single year. This system trades Long only. 
• Rebound (ETF): Trades Exchange Traded Funds with the goal of always holding the best performing ETFs. Trading ETFs gives investors excellent diversification with fewer risks than investing in individual stocks that can be negatively impacted by bad news.  Rebound ETF is slightly less conservative compared to the Rebound Mutual Fund Trader.
• Rebound (Select): Trades only the Fidelity Select Funds with the objective of always holding the best select funds at any given point in time. The select funds concentrate their investments in specific sectors of the market. 
• Rebound Rabbits:  This new system buys good quality stocks that are oversold.  The stocks are purchased with a limit order and simultaneous profit taking and stop loss limit orders.  The average holding period is approximately 4 days and the percentage of winning trades is 65 to 70%.  A maximum of 10 open position is held at any given point in time. 
• Rebound Stocks:  This is a swing trading system that trades both ETFs and Stocks long only.  Signals are sent in the evening for execution at the open on the next trading day.  A strict profit-protect and stop loss discipline is applied for every trade. 
• Rebound Solo:  This new system holds only one stock at a time.   A universe of over 8,000 stocks is sorted to find the very best stock available.  Since it trades long only, it is ideally suited to trading in an IRA account.  It can be traded with an account size a small as $2,000.  The average holding period is only 4 to 5 days.  

5. How much does your service cost?

The monthly subscription fee for Rebound Mutual Fund Trader, Rebound ETF, and Rebound Stocks is $50.00 per month.   The monthly subscription fee for Rebound Select  Select  is  $25.00 per month.   Rebound Solo subscribers pay $20 for every winning trade and nothing for a losing trade.

With the exception of Rebound Solo and Rebound Rabbits, all of my systems come with a one month free trial plus an unconditional 30 day money back guarantee.  This gives you a full 60 days risk free opportunity to see if this investment approach is right for you.

Rebound Solo is only available for subscription through Collective2.  To learn more go to: http://solo.collective2.com

6. Is there any free trial or money back guarantee available?

With the exception of Rebound Solo and Rebound Rabbits, there is a one month free trial plus a 30 day money back guarantee available with all of my system subscriptions.  I believe we are unique in offering such a generous 60 day risk free opportunity to make sure our systems are right for you.

Refund/Cancellation Policy:

Our service comes with a one month free trial plus an unconditional 30-day money back guarantee. If you are not satisfied for any reason in the first 60 days, we will be glad to issue a refund. Simply e-mail us at info@reboundtrading.com to notify us of your refund request. Please include your name and email address in your email message. 

Please note: in order to prevent abuse of our refund policy, our 30-day money back guarantee is only applicable to customers subscribing for the first time.

Once the 30-day money back guarantee period is over, there is no refund. You can cancel at any time by canceling your subscription at PayPal or by sending a cancellation request to info@reboundtrading.com. Please specify your name and email address in the message. Upon notification of cancellation, Rebound Trading Systems will cancel your subscription at PayPal so that no additional charges will occur.

IT IS YOUR RESPONSIBILITY TO INITIATE THE REFUND/CANCELLATION REQUEST AND TO FOLLOW-UP IF IT IS NOT ACKNOWLEDGED. 

7. How do I cancel my account if I decide to discontinue your subscription service?

Please perform the following steps to unsubscribe to my services:

1. Send me a brief email using the "CONTACT US" tab on this page. It would be helpful to know why the system failed to live up to your expectations.
2. If you signed up through the Collective2 web site, go to the Collective2 web site and click on the unsubscribe button. 
3. If you signed up via PayPal, go to your PayPal account and click on the unsubscribe button.

8. What are the minimum and recommended account sizes required to trade your various systems?

The minimum and recommended account sizes are as follows:

• Rebound Mutual Fund Trader: (No minimum, it could be traded with as little as $2,000 with a limited number of funds in the portfolio. Since we hold 7 funds when fully invested, I recommend an account size of at least $7,000 to trade this system.
• Rebound Index Trader ETF: No minimum. ETFs trade just like stocks. However to achieve good diversification, I would recommend a minimum of $7,000 to trade this system.
• Rebound Index Trader Select: There is a $2,500 minimum investment for each Fidelity Select Fund. Since we generally hold 7 funds when fully invested, an account size of $17,500 would enable good diversification.
• Rebound Rabbits;  There is a $25,000 minimum account size.  This system trades very frequently and therefore pattern day trader rules apply. 
• Rebound Stocks:  This new trading system can be traded with a portfolio size of $10,000 or greater.  This system can be auto-traded.
• Rebound Solo:  Since this system holds only one stock at a time, it could be effectively traded with an account size as small as $2,000.  Of course, a greater level of investment will generate a higher annualized rate of return.

9. How is the best way to trade your various trading systems?

• Mutual Fund Trader:  We recommend you set up an account at a discount broker to minimize commission charges.  I personally use TD Ameritrade and have found them to be very good. Other alternatives include Scottrade , Etrade, Fidelity, or Charles Schwab. All of these firms allow you to open an account on line.
• Rebound ETF: Since ETFs trade just like stocks you can use any brokerage account. I recommend you use a discount broker to minimize commission costs.
• Rebound Select: You should open an account at Fidelity Investments to effectively trade this system.
• Rebound Rabbits: To trade this system effectively you should open an account at a discount broker with a minimum account size of $25,000.
• Rebound Solo:  Since this system is likely to trade more frequently than the other Mutual Fund and ETF systems, it is important to trade this system with a discount broker.
• Rebound Stocks:  This swing trading system involves slightly more work than the other systems since it involves placing an OTA trailing stop order simultaneously with each trade.  Given the outstanding performance of this system, the extra work is well worth the extra effort involved.  

10. Can I trade your various systems in an IRA account?

Yes, all of my systems can be traded in an IRA account.  These systems do not trade short.  There will be occasions when we purchase inverse ETFs which enable us to prosper when the markets are declining.

11. Are any of these systems day trading systems?

No, none of my systems are day trading programs. Most signals are generated after the market closes for execution at the next morning's opening price.  

Rebound Stocks is a swing trading system with holding periods of 1 to 14 days on average.

For Rebound Rabbits the average holding period is 4 or 5 days but many times the stock will reach its profit target the same day that the order is placed.

The average holding period for Rebound Solo is currently 4 to 5 days.

12. How often do the systems trade and how much time will it take me to trade the systems?

While it is difficult to know for certain how often a given system will trade, they will typically trade about 25 to 40 times per year.  For all of the mutual fund and ETF based systems, you should be able to execute the trades on-line in less than 30 minutes per month. 

Rebound Rabbits will trade almost every day.  Trades are placed in the evening for execution the next day.  It should take less than ten minutes per day to place the trades for Rebound rabbit.

Everyone should be able to devote at least 30 minutes per month to managing their investment portfolio.

13. How do I get the signals?

For all of the Mutual funds, ETF, and Stock trading systems, every time there is a signal change you will receive an email that evening which gives specific instructions as to what I am selling and / or what I am buying.  If you follow my lead, all of the trades should ideally be entered online before the market opens on the next trading day.  The trade signals for Rebound Solo can come at any time during the day.  A text message can be sent to your cell phone or pager if you are interested in this service.

14. Do I need to try to time the entries once a signal change has been issued?

No, there is no need to try to time your entries once a signal has been issued. All of the back testing of these systems, and all of my own personal investing is based on buying or selling at the next day's opening price.  The one exception is Rebound Solo which can give its signals intraday.

15. How many signals are issued in a typical year?

While it is impossible to predict the number of signals issued in a given year, it is likely that there will be between 25 and 40 signals per year. Of course in a choppy market there will be more signals. In a trending market there will be fewer signals generated.

The Rebound Stocks system trades more frequently.  On average it is likely that this system will trade 7 stocks twice per month.

16. Do you trade any of your systems with your own money?

Absolutely! I trade every single one of my systems with my own money. I have substantial investments in each of my  Mutual Fund, Exchange Traded Funds (ETF), and Stock Trading systems.

Interestingly, many system developers do not trade their own systems with their own money. I would recommend that you avoid systems that the developer is not trading with his or her own money.

17. How do I sign up and get one or more of these systems working for me?

You can sign up for all of these system on this web site. Just click "Subscribe",  then complete all 5 steps in the subscription process.  Due to the unique aspect of Rebound Solo, you will taken to the Collective2 website where you will hit the "Subscribe" button.

18. What are Exchange Traded Funds or ETFs?

Exchange traded funds are a basket of securities, that are very similar to mutual funds except they trade like a stock on the major stock exchanges. There are no minimum holding periods or early redemption fees.   ETFs are priced throughout the day as opposed to only daily like mutual funds. 

Since ETFs trade just like a stock, they can be sold short.  Exchange Traded Funds are one of the fastest growing segments of the financial markets today.

To learn more go to TRADING SYSTEMS and then go to Rebound ETF.

Also, there are a couple of good articles on the website that explain the pros and cons of ETFs.

19. What is the rule of 72?

Albert Einstein is credited with discovering the Rule of 72.  Referring to compound interest, Albert Einstein is quoted as saying: "It is the greatest mathematical discovery of all time."

The rule of 72 is a simple formula to determine the length of time it takes money to double at various annualized rates of return.  You divide your annualized rate of return into 72 and that tells you the number of years it takes to double your money.  

Examples: 

At 24% annualized rate of return your money doubles in 3 years.

At 30% annualized rate of return your money doubles every 2 1/2 years.

At 36% annualized rate of return you money doubles in 2 years.

Through the power of compounding, if you could maintain a 36% annualized rate of return, your money at the end of year four would be four times your original investment and at the end of year six would be 8 times your original investment.  

20. How would you describe your typical subscriber?

Most of my subscribers earn a good income and have money to invest.  However, they do not have the time and / or expertise to consistently generate an excellent return on their investments.   Most of the Rebound Trading Systems take less than 30 minutes per month to trade with your online discount broker.  Importantly, they have stood the test of time in delivering outstanding results.

21. Can any of your systems be auto traded?

Arrangements have been made to have the following systems auto-traded:

• Rebound Mutual Fund Trader
• Rebound ETF
• Rebound Stocks
• Rebound Rabbits
• Rebound Solo

If you are interested in pursuing this auto trade option, please send me an email at info@reboundtrading.com and I will put you in touch with the auto trade broker.

22. Do you have any kind of referral program?

Yes, in fact I have found that referrals from my current subscribers are an excellent way to build my subscriber base.  For every new referral that subscribes and stays for at least 3 months, I award my current subscriber with a free month.

23. Do you employ any kind of stop loss system on your trades?

Yes indeed.  Every single trade has a strict stop loss and profit-protect discipline applied to every trade.  My objective is to cut our losing trades quickly to minimize losses and let our profitable trades run.

24. How will your systems perform in a bear market?

If we were to move into a bear market, initially all of our current open positions would hit their respective stop loss or profit-protect points and we would move to the safety of the money market.  If the market were to continue to decline, the inverse ETFs would start to move up to the top of the momentum model rankings.  We would then start buying inverse ETFs.  (An inverse ETF goes up when the market is going down.  Some of the inverse ETFs are leveraged 1.5 or 2.0 to 1.0.  Therefore, if the market goes down 1% the inverse ETF would go up 1.5 or 2.0%.   Also, it is important to note that I do not believe in being fully invested at all times.   When the market starts to go down, I will systematically begin moving my money to the safety of the money market.

25. Are you a registered investment adviser?

GDW Investment Systems, LLC ("GDW" or "we" or "us") is not registered as an investment adviser.  GDW relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws.  As such, GDW does not offer or provide personalized advice.  Our emails and website reflect the actual trades being made by the President of GDW Investment Systems, LLC for his own accounts.  Subscribers to the various Rebound Trading Systems are free, but in no way obligated, to execute similar trades in their own accounts.

The information in these emails or on the website are not intended to be, and should not be construed in any manner whatsoever as, personalized advice.  Also, our emails and website and the information provided by us should not be construed by any subscriber or prospective subscriber as GDW Investment Systems, LLC solicitation to effect, or attempt to effect, any transaction in a security.  Investments in the securities markets are speculative and involve substantial risk.  

The information that we provide or that is derived from our emails or website should not be a substitute for advice from an investment professional.  We encourage you to obtain personal advice from your professional investment advisor and to make independent investigations before acting on the information that you obtain from GDW Investment Systems, LLC or derive for our website. Only you can determine what level of risk is appropriate for you.