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Selling short (as it's commonly known) is selling a stock or other security, usually borrowed, in anticipation of buying it back at a lower price.

ProFunds offers specialized mutual funds designed to accomplish the task of "shorting". At BTI, we invest in these funds when a market decline is anticipated. Shorting in this instance does not require the investors actually borrow or sell a security, rather, they can simply invest in the ProFunds that seek to profit from declining markets.

• Why would one want to short? Unlike typical index funds, the bearish ProFunds are designed to help you hedge against market declines. These funds increase in value when the market declines and decrease in value when the market rises.

• Example: When the S&P 500® goes down by 1% on a particular day, the UltraBear ProFund should increase by 2%. Conversely, when the S&P 500 goes up by 1%, the UltraBear ProFund should decrease by 2%.

Concepts

Neural Networks

Leverage

Short Selling

Market Timing

Active Investing

BrainTrader Investments is an independent Registered Investment Advisor and is not affiliated with ProFunds. As is the case for any investment, the advisor cannot guarantee future performance and there can be no certainty that the investment objectives of the strategy can be achieved. An investment in the strategy is a high-risk investment. Investors may lose a substantial portion or all of the money they invest in the strategy, which is suited only to sophisticated investors who can afford the risk involved. Only capital that the investor can afford to lose should be invested in a strategy of this nature, and investors are recommended to consult with their tax professional before investing in the strategy.