Running Slugger & Switch-Hitter in an IRA
One of the most common questions from new members: can I follow Slugger and Switch-Hitter inside my IRA? Yes — the systems were deliberately built so that a standard self-directed retirement account can trade them. Here’s why, and what to check with your broker before your first signal.
Why the systems fit an IRA
Both systems are long-only: they buy liquid, large-cap stocks from the S&P 500 and NASDAQ 100 and later sell them. There is no short selling, no options, and no margin — the three things retirement accounts restrict. If your IRA can buy an individual stock, it can follow the signals as written.
What you need
A self-directed traditional or Roth IRA at any mainstream brokerage that allows individual stock trading — the account type most brokerages open by default. No margin agreement is required, and no special account settings are needed. If your retirement money currently sits in an employer 401(k) with a fixed fund menu, that account generally cannot trade individual stocks; members in that situation typically use a separate IRA for the systems.
Practical notes
The monthly rhythm suits retirement accounts well. Positions are typically held for weeks, so cash from a sale has settled long before the next month’s buys. The one mechanic worth confirming with your broker is how they handle buying with recently-sold (unsettled) funds in a cash account, since policies differ; with signals arriving the evening before the trade day, you will always know exactly what is being bought and sold at the next open.
Contribution limits, rollovers, and the tax treatment of gains inside a traditional versus Roth IRA are questions for your tax professional — they depend on your situation, and we don’t give individual advice.
Curious how the signals themselves work day to day? Start with How to Read a Signal Email.
Educational only; not investment, tax, or legal advice. Relaxed Trader is not a registered investment advisor or broker-dealer. Trading involves risk of loss, and past performance is not indicative of future results.