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).

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