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
or just short ERX, I
ERX/XLE swing system
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).