The R.I.D.E. to Retirement Income
Learn To Play. Earn the Dividend.
Capture the CEF NAV Discount.
Meet the PETS, catch the VIBE, onboard Pensionizer express safely and effectively. We have a 45-day long structured RIDE for you. RIDE is a learning experience. Our 20/20 in 20 minutes ZOOM DEMO is designed for retirement practitioners, researchers, pros, and amateurs alike, making sophisticated USD CEF trading accessible through progressive, structured, no nonsense hands on online learning.
RESEARCHER
Curious beginner exploring data fundamentals and market basics. Unlock access to foundational PETS VIBE educational content and basic data visualization.
INSPECTOR
Pattern spotter analyzing key performance metrics and identifying discount anomalies. Unlock advanced VIBE dashboard analytics and real-time market data interpretation.
DETECTIVE
Arbitrage operator building sophisticated trading strategies. Unlock access to QuantConnect signal integration and guided strategy development within the VIBE Toolbox.
EXPERT
Doctrine carrier who can teach, innovate, and safely manage automated trading. Unlock full IBKR execution integration, custom strategy deployment, and leadership in the PETS VIBE community.
This framework ensures you gain a deep understanding of the underlying concepts before leveraging the full power of automated trading. The PETS VIBE (Virtual Income Boost ETF Technology) system, powered by Pensionizer Express technology, is your central command center for monitoring trading signals and managing automated CEF trading strategies.
Track performance metrics, view real-time discount anomalies, and oversee your trades within the Solactive Top 50 Discount & Yield CEF Index pool. The VIBE PETS Toolbox seamlessly integrates QuantConnect signals with IBKR execution, offering unparalleled visibility and control over your investment activities. Leverage quantitative signals to help you harvest income and mean-reversion opportunities, all accessible through this intuitive system when you're ready.
Core Investment Thesis
The Opportunity
Closed-end funds trade at persistent discounts to NAV, creating arbitrage opportunities that systematic strategies can exploit.
Universe Discipline
Solactive Top 50 CEFs provide a vetted, liquid pool of proven discount and yield candidates
Signal Stack
Discount Z-score + short-term RSI + relative strength filter combine fundamental value with technical timing
Tax-Aware Execution
QuantConnect signals trigger IBKR API orders with intelligent lot selection for IRA, RRSP, and SIPP accounts
Higher Net Yield
Discount Capture Alpha
Systematic Discipline
Tax-Efficient Execution
Strategy Mechanics: Screening & Ranking
The Pocket Rocket engine evaluates the Solactive Top 50 universe using a sophisticated multi-factor ranking system. Each fund receives a composite score based on four weighted dimensions: value, income, momentum, and efficiency.
Discount Z-Score (40% weight)
Compute each fund's current discount using rolling 180-day mean and standard deviation. Funds trading at extreme discounts relative to their historical range score highest.
Yield Component (25% weight)
Distribution yield matters for retirement income. Higher yields increase attractiveness, but must be sustainable and supported by NAV coverage.
RSI Momentum (20% weight)
14-period RSI and 30/90-day relative strength vs. the pool identify oversold conditions and reversal setups.
Expense & Assets (15% weight)
Lower expense ratios and adequate AUM ensure the fund is cost-efficient and liquid enough for execution.
This scoring framework updates daily, allowing the algorithm to respond to changing discount dynamics and market conditions without human intervention. The result is a continuously optimized watch list of the most compelling opportunities.
Signal Rules & Entry Logic
The system employs strict quantitative triggers to enter and scale positions. A buy signal fires when three conditions align: discount Z-score drops to -1.5 or lower, RSI falls below 40 indicating oversold conditions, and 30-day relative strength places the fund in the bottom quartile of the pool. This triple confirmation reduces false signals and concentrates capital on the most statistically significant opportunities.
For funds that continue to cheapen, the algorithm adds a second tranche when the Z-score reaches -2.5, averaging down into deeper value. This disciplined scaling approach increases exposure to extreme dislocations while maintaining risk control through position limits.
Exit discipline is equally rigorous. Positions close when the discount Z-score reverts to -0.5 or higher (capturing mean reversion), RSI rises above 65 (indicating overbought conditions), or a time stop triggers at 180 days (preventing capital from being tied up indefinitely in non-performing holdings). These rules ensure the strategy realizes gains, avoids overstaying reversals, and maintains portfolio turnover within target ranges.
Execution Architecture : From Solactive to Allindex to Top 10
QuantConnect Integration Details
  • Runs on institutional-grade infrastructure with built-in data, backtesting, and paper trading.
  • Custom strategy code handles signal generation, portfolio construction, and order submission.
  • One-click deployment from QuantConnect to Interactive Brokers.
  • Authenticated via IBKR API keys with OAuth security.
  • Full control over paper vs. live trading toggles.
Interactive Brokers Order Details
  • Uses limit orders with time-in-force constraints and midpoint routing.
  • Designed to minimize spread costs and achieve best available prices.
  • Intelligent routing to prevent market impact, crucial for less-liquid CEFs.
  • Safety mechanisms include configurable max daily trades and circuit breakers.
  • Automatic lot selection optimized for tax-advantaged accounts (IRA, RRSP, SIPP).
  • All orders logged with full audit trails for compliance.
Risk Controls & Operational Guardrails
Turnover Cap
Target ≤12 trades/year per account to align with breakeven economics and minimize transaction drag
Drawdown Control
Portfolio stop if rolling 60-day drawdown exceeds configurable threshold (e.g., 8-12%)
Liquidity Filter
Exclude funds with insufficient average daily volume or extreme bid/ask spreads to ensure executable fills
Concentration Limits
Cap single-CEF exposure and sector/strategy buckets to diversify risk across the portfolio
Compliance
Restrict automated trading to account types that permit it; disable dividend capture in taxable accounts when tax drag outweighs benefit
These controls aren't just good practice—they're essential for sustainable alpha generation. Excessive turnover erodes performance through commissions and slippage. Drawdown stops protect capital during market dislocations. Liquidity filters prevent execution at unfavorable prices. Concentration limits reduce single-position risk. And compliance restrictions ensure the strategy operates within regulatory and account-specific constraints. Together, these guardrails transform a promising signal into a robust, production-ready system.
Performance & Economics
12.2%
5-Year Annualized
Illustrative performance
10.3%
10-Year Annualized
Illustrative performance
-9.2%
Pool Avg Discount
Opportunity for discount capture
6.8%
Pool Avg Yield
Consistent income generation
$45
Annual Subscription
Signal feed and QC strategy template—professional-grade tools at retail price
7.2%
Net Retirement Yield Target
After fees and slippage, delivering consistent income for tax-advantaged accounts
Illustrative historical backtests show compelling risk-adjusted returns: 5-year annualized performance of approximately 12.2% and 10-year performance of 10.3%. The underlying Solactive Top 50 pool trades at an average discount of -9.2% with an average yield of 6.8%, providing ample opportunity for discount capture and income generation.
At $45 annually for the signal feed and QuantConnect strategy template, the system reaches breakeven at roughly 12 trades per year—well within the turnover targets designed into the risk controls. Net retirement yield targets of 5-8% after all fees and realistic slippage make this an attractive solution for advisors and sophisticated self-directed investors.
Go-to-Market Strategy
Seamless Onboarding
One-click QC project import with IBKR API key walkthrough and preconfigured retirement account tax profiles.
Live Analytics UI
Solactive ranking board, per-CEF analytics (discount history, distribution schedule, NAV vs price), and trade log.
Advisor Controls
White-label reporting, client risk profiles, and manual override capabilities for each account.
Flexible Monetization
Base subscription plus performance tier for managed execution or advisor licensing.
Our strategy focuses on frictionless adoption and comprehensive features:
  • Frictionless Adoption: Easy setup for retail investors and advisors with preconfigured tax profiles.
  • Transparent UI: Real-time Solactive rankings, detailed CEF analytics, and full trade logs.
  • Advisor Flexibility: Tools for managing multiple client accounts, including white-label reporting and customizable risk profiles.
  • Tiered Monetization: Affordable subscription for DIY users, with advanced options for managed execution or firm-wide licensing.
Upsell Opportunity: Portfolio Manager Coaching
Premium Path
Transform signal subscribers into coached portfolio managers with premium training and community access.
The real revenue opportunity extends beyond the $45/year signal feed to comprehensive portfolio management coaching. This isn't just a price increase; it's a value transformation.
Base Tier: Signal Feed
  • Price: $45/year
  • Value: Access to signal feed only
  • Revenue: $4,500/year from 100 subscribers
Premium Tier: PM Coaching
  • Price: $4,500/year
  • Value: 10x revenue multiplier per converted subscriber
  • Revenue: $4,500/year from 1 converted subscriber
Premium Coaching Benefits:
Live strategy sessions
Personalized portfolio reviews
Advanced parameterization workshops
Private community of quantitative investors
Skills to customize and adapt strategies
Expertise for deploying algorithmic strategies at scale (for advisors)
10
Base Subscribers
$45/year signal feed
1
Premium Convert
$4,500/year PM coaching
10x
Revenue Multiplier
Per upgraded subscriber
Implementation Roadmap
1
Phase 1: Signal Validation
Finalize signal parameters and backtest across multiple market regimes, including transaction costs and dividend timing precision
2
Phase 2: Execution Module
Implement IBKR order module with limit/midpoint routing and safety throttles for production deployment
3
Phase 3: Tax Optimization
Build tax module for IRA/RRSP/SIPP rules and intelligent lot selection to maximize after-tax returns
4
Phase 4: Onboarding Flow
Create seamless QC template, IBKR connection wizard, and demo account for risk-free testing
5
Phase 5: Pilot & Scale
Run controlled pilot with paper trading, then launch small live cohort before scaling to full subscriber base