Bootstrapping

When a Sell signal happens and the security cannot be sold at a profit (or break even), a GTC Sell order is set at the BEP. (A Good Til Canceled Sell order is set at the Break Even Price).  If a TriVista Buy Signal happens while the GTC order is active, the historical tracking system will try to “Bootstrap” its way out of the dilemma by purchasing more shares IF the price is at least 20% lower than the BEP. 

The amount of the bootstrap purchase is the same as the original investment value. The funds for the bootstrap purchase are available from recent sales of other securities.  When a GTC order is active, a portion of the funds from previous sales should be kept aside for possible bootstrap purchases.

When a bootstrap purchase is made, the GTC Sell order is immediately cancelled. A new BEP is calculated.  The next action will be at the next Sell Signal where the security should be able to sell at a profit. If it doesn’t sell, a new GTC Sell order is set. If the GTC Sell order is not met by the time the next Buy Signal hits, another bootstrap buy will occur.