I'm actually anxious to do the same thing with the S&P 500
or SPY into a swing system like ERX based on the same indicators
and methodology of course the BPSPX would be used in
place of the BPENER, however all the other indicators and settings
would be the same like MACD, Bollinger Bands, RSI 14 and 2,
Stochasic 5, 34, and 60,
or just short ERX, I prefer the short the Inverse ETF's since
they can degrade some thus you get an extra boost.
Some of the trades can last 3 months, with one trade that lasted
9 months and I don't like holding those leveraged ETF's for that
long because of degradation, a short time is fine, but I would
rather be short ERX for 9 months than holding ERY
And guys
PLEASE PLEASEI
can't stress enough, when I do release this system, do NOT
go crazy overboard on margin, especially on the 3X ETF's, for
example there is one 11% losing trade (which was in the last bear
market before Mar 2009 so it's understandable because of the huge
volatility at that time) however that would be a 33% losing trader
with ERX or ERY, how many of you could emotionally handle that if
put a large portion of your capital into the trade?
Again the vast majority of losing trades are very small
like only a few percentage points and there are not many of them,
but some can be 5% or 7% (a 7% losing trade for example would be
roughly -21% for ERX/ERY, that's large number for you guys to
emotionally handle). Also avoid buying options because when
in a trade we don't know how long the trade will last, and options
have a time decay.
The point is, don't put your whole account into a trade, don't
use margin, don't buy Options because of their time decay and since
we dont' know how long a trade will last (could last days to weeks
to months), use proper money management. If a trade goes bad
and you are on margin in ERX/ERY or have options, do NOT complain
to us about a bad trade, that's on end for using too much
leverage.
Personally I'll be trading XLE, as I don't need all that
margin
I'm actually anxious to do
ERX/XLE swing system
Posted by matt on 21st of Nov 2012 at 01:03 pm
I'm actually anxious to do the same thing with the S&P 500 or SPY into a swing system like ERX based on the same indicators and methodology of course the BPSPX would be used in place of the BPENER, however all the other indicators and settings would be the same like MACD, Bollinger Bands, RSI 14 and 2, Stochasic 5, 34, and 60,
Matt -ERY
Posted by lamb on 21st of Nov 2012 at 04:10 pm
Can we trade ERY when system goes short?
or just short ERX, I
Posted by matt on 21st of Nov 2012 at 04:50 pm
or just short ERX, I prefer the short the Inverse ETF's since they can degrade some thus you get an extra boost.
Some of the trades can last 3 months, with one trade that lasted 9 months and I don't like holding those leveraged ETF's for that long because of degradation, a short time is fine, but I would rather be short ERX for 9 months than holding ERY
And guys PLEASE PLEASEI can't stress enough, when I do release this system, do NOT go crazy overboard on margin, especially on the 3X ETF's, for example there is one 11% losing trade (which was in the last bear market before Mar 2009 so it's understandable because of the huge volatility at that time) however that would be a 33% losing trader with ERX or ERY, how many of you could emotionally handle that if put a large portion of your capital into the trade?
Again the vast majority of losing trades are very small like only a few percentage points and there are not many of them, but some can be 5% or 7% (a 7% losing trade for example would be roughly -21% for ERX/ERY, that's large number for you guys to emotionally handle). Also avoid buying options because when in a trade we don't know how long the trade will last, and options have a time decay.
The point is, don't put your whole account into a trade, don't use margin, don't buy Options because of their time decay and since we dont' know how long a trade will last (could last days to weeks to months), use proper money management. If a trade goes bad and you are on margin in ERX/ERY or have options, do NOT complain to us about a bad trade, that's on end for using too much leverage.
Personally I'll be trading XLE, as I don't need all that margin
system trading - talking my language now
Posted by roger on 21st of Nov 2012 at 08:41 pm
Roll it out - cant wait to see it. Just now put one together that I haven't thought of before, based on your general idea. ie ERX,ERY, XLE, SPY.
No worries from me! Trading
Posted by frtaylor on 21st of Nov 2012 at 05:27 pm
No worries from me! Trading very conservatively these days (not that I ever did swing for the fences).