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How to create a simple DIY income portfolio using ROAR.PiTrade.com
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ticker lesson
Breakdown
0:02lesson
Markets are canceling out: 80% of investors need only 2-3 ETFs
- 21 months of IBM gains lost overnight
- Market volatility cancels out gains across sectors
- 80% of investors can survive with 2-3 ETFs
- Buy-and-hold is historically risky
- Trading, not investing, is alive
2:54lesson
Long-short strategy: exploit sector swings with inverse ETFs
- Use long-short portfolios for sector swings
- High beta/low beta ETFs as core watchlist
- Daily seesaw of winners and losers
- Market is canceling out across time
- Trading > buy-and-hold in 2026
5:15lesson
Nickel-and-dime investing: small gains, tight risk control
- Target 10% gain, tolerate 5% loss
- Double tolerance for leveraged inverse ETFs
- Trading strategy, not speculation
- Use charts and process, not emotion
- Formalized, tactical, process-oriented
7:27lesson
Bond ladder: core defensive strategy with hedging
- Bond ladder is favorite portfolio component
- Hedge with inverse ETFs like TMV
- TMV triple inverse performs during rate hikes
- Hedge bond ladder against rate risk
- Income from bonds + inverse ETFs
9:43SPY· ticker
SPY — covered call ETFs fail in downturns
- SPY up 30% but lost all gains
- Covered call ETFs fail in crashes
- Yield doesn't protect against price collapse
- Total return matters, not yield
- High yield = high risk of collapse
13:56lesson
Technical setup: narrowing wedge signals big move
- Wedge pattern forming in market
- Narrowing tops suggest breakout or breakdown
- Possible move to 350–300 in semiconductors
- AI spending drives volatility
- Jailbreak scenario possible
16:07IBM· ticker
IBM — 21 months of gains erased overnight
- IBM fell through floor today
- Lost 21 months of gains overnight
- AI spend triggered outsized reaction
- Stop orders failed to protect
- No recovery in price action
18:12TLTW· ticker
TLTW — long bonds with covered calls
- TLTW yields 9–11%
- Covered calls add 5% income
- Hedge with TMV during rate hikes
- TLTW crashes in 2022
- TMV triple inverse gains during sell-off
20:20lesson
ROR 10 ETF portfolio: 10 ETFs with dynamic allocation
- ROR 10 uses roar score for allocation
- Worst 12-month loss: -4%
- Best 12-month return: 31%
- Average return: 11%
- Standard deviation: 9% (half SP500)
22:45lesson
Simple two-ETF portfolio: SPY + T-bills with roar score
- 60% SPY, 40% T-bills based on roar score
- Automated weekly rebalancing
- Outperforms 60/40 in volatility
- Standard deviation: 9%
- R-squared: low, meaning low market correlation
25:10lesson
Add VIX-like hedge: TMV for crash protection
- TMV explodes during market shocks
- IBM would have been up 700% with VIX hedge
- Volatility spikes during AI trade swings
- TMV crushes 60/40 in crashes
- Hedge increases resilience
27:46lesson
Two-ETF strategy: stocks, cash, and roar score
- Simple: stocks, cash, roar score
- Rebalance weekly or monthly
- Standard deviation: 9%
- R-squared: low
- Process > prediction
30:06lesson
Hedge equity: add TMV for disaster protection
- TMV acts as put option
- Protects against 2022-style crashes
- Use when market is overvalued
- Dynamic allocation based on roar score
- Reduces drawdowns without sacrificing upside
32:18lesson
Covered call ETFs are dangerous: high yield ≠ safety
- YBTC yield 120% but lost all gains
- Covered call ETFs fail in downturns
- Yield doesn't protect against price collapse
- High yield = high risk of collapse
- Even bonds can tank
35:00lesson
Markets are broken: algorithms and index investing distort behavior
- Markets no longer behave like before
- AI trade amplifies volatility
- Algorithms cause yo-yo swings
- Machine-driven markets = unpredictable
- Accidents are inevitable
37:33lesson
Covered call ETFs fail in crashes: total return matters
- YBTC lost all gains despite 120% yield
- Covered call ETFs mirror underlying asset
- No protection in bear markets
- High yield = high risk of collapse
- Even small caps and bonds can crash
40:07lesson
Income investing is dangerous: yield ≠ safety
- High yield = high risk of collapse
- Income is meaningless if capital lost
- Dividend stocks can tank
- Private credit, MLPs, closed-end funds fail
- Always hedge income strategies
42:36TLTW· ticker
TLTW + TMV: hedge bond ladder with triple inverse
- TLTW: long bonds + covered calls
- TMV: triple inverse TLT
- 85% TLTW, 15% TMV
- Annualized return: 4.6%
- Max drawdown: 3.1%
45:01lesson
Build your own portfolio: use ETF Yourself for customization
- Use ETF Yourself to build portfolios
- Test strategies before investing
- Compare benchmarks like SPY, AOR
- Use roar score for allocation
- Backtest with real data
47:21lesson
Simple two-ETF portfolio: TLTW + TMV with dynamic allocation
- 85% TLTW, 15% TMV
- Adjust based on roar score
- Annualized return: 4.6%
- Max drawdown: 3.1%
- R-squared: low
49:47lesson
Low R-squared = true independence from market
- R-squared measures market correlation
- Low R-squared = independent returns
- Hedged portfolio reduces risk
- Use TMV as collar
- Income strategy must be protected
52:03lesson
Income investing is a nightmare for older investors
- High yield stocks are risky
- Income is meaningless if capital lost
- Dividend stocks can crash
- 50+ investors need protection
- Income must be hedged
54:44DIV· ticker
DIV — high-yield dividend ETF with risk
- DIV yield: 6.5%
- High-yield stocks: MLPs, AT&T, UPS
- DIV crashed during pandemic
- Drawdown: 52%
- Not a safe income play
57:08lesson
Hedge dividend ETF with inverse: SDS for crash protection
- Use SDS (double inverse S&P) as hedge
- 90% DIV, 10% SDS in low-risk
- 50% DIV, 50% SDS in high-risk
- Cap SDS at 30%
- Protects against equity crash
59:38lesson
Test portfolio: DIV + SDS vs. AOR (60/40)
- DIV + SDS beat 60/40 year-to-date
- Drawdown: 7.5% vs. 9%
- R-squared: very low
- Alpha generated
- Better risk-adjusted return
1:01:56lesson
Use VM and SDS for better income hedging
- VM: Vanguard dividend ETF
- Use VM + SDS for income
- 90% VM, 10% SDS in low-risk
- 50% VM, 50% SDS in high-risk
- Cap SDS at 30%
1:04:10lesson
Portfolio beat 60/40: income with low risk
- DIV + SDS beat 60/40
- Drawdown: 7.5% vs. 9%
- R-squared: low
- Alpha: 4.6% annualized
- Risk-adjusted return superior
1:06:42lesson
Automated portfolio building: use ROAR score for allocation
- Use ROAR score to allocate
- Dynamic rebalancing
- Test multiple strategies
- Backtest with real data
- No personal advice, just process
1:08:49lesson
Don't chase yield: income is meaningless if capital lost
- High yield = high risk
- Income is not safe
- Hedge all income strategies
- Alpha comes from risk control
- Don't assume market will always rise
1:11:27lesson
Simple idea: use ROAR score to rotate between ETFs
- ROAR score determines allocation
- Rotate between aggressive and defensive ETFs
- Use SPY, AOR, AOM, AOK
- Minimum 10% in each
- Dynamic, automated, process-driven
1:13:50lesson
Correlation is a problem: avoid overlapping ETFs
- Many ETFs are highly correlated
- Avoid overconcentration
- Use ROAR score to balance
- Minimum 10% in each
- Dynamic allocation prevents bias
1:16:19lesson
Test multiple portfolios: find the best risk-adjusted return
- Backtest multiple strategies
- Compare SPY, AOR, AOM, AOK
- Use ROAR score to rotate
- Look for alpha and low drawdown
- Process > prediction
1:19:10lesson
Use SHV and SPY for simple rotation strategy
- SHV: short-term Treasury ETF
- SPY: S&P 500
- Rotate based on ROAR score
- Minimum 20% in each
- Dynamic allocation for risk control
1:22:00lesson
Final test: ROAR score rotates between SPY and SHV
- ROAR score determines allocation
- Minimum 10% in each
- No single ETF dominates
- Backtested with real data
- Process-driven, not predictive
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