chlo888 -- you can get the same leverage using SSO and
SDS. With futures you are getting 10x leverage, which is a
lot of leverage. That's great for short-term trading, and it
may seem great for the SPY system, until you have to sit through a
drawdown of 40% or 50% or 100% of your
capital. I agree with perthx --
of course in the grand scheme of the system, intra-trade drawdowns
are to be ignored. Its only the trade losses that matter
statistically. But still, you must go into it with eyes open
and being realistic about how much of a drawdown you will be able
to stomach without second-guessing the system and closing the
trade.
Thanks Matt. Could you not
Astounding Performance using Profunds 2X from 1997
Posted by chlo888 on 8th of May 2011 at 08:35 am
Thanks Matt. Could you not get this same type of leverage with the emini futures?
chlo888 -- you can get
Posted by Michael on 8th of May 2011 at 05:01 pm
chlo888 -- you can get the same leverage using SSO and SDS. With futures you are getting 10x leverage, which is a lot of leverage. That's great for short-term trading, and it may seem great for the SPY system, until you have to sit through a drawdown of 40% or 50% or 100% of your capital. I agree with perthx -- of course in the grand scheme of the system, intra-trade drawdowns are to be ignored. Its only the trade losses that matter statistically. But still, you must go into it with eyes open and being realistic about how much of a drawdown you will be able to stomach without second-guessing the system and closing the trade.
rydex funds
Posted by onoffon on 8th of May 2011 at 09:52 am
rydex lets you sell at 10:30 am if you want something close to the opening price.