I use the etfs in an allocation percentage, so rather than using
options, I like the 3xetf as a rolling option that I can trade day
to day.
So example would be 60% LABD vs. 40% LABU. I use the same
principles, buy supports, and sell resistances on both sides. It
has been very effective for me. A great trader told me once, when
your emotions are lying to you, take a step back and look at the
chart.
Right now LABD is just crossing the 5 day moving average at
$17.37 and the 9 day is up at $20.81. Pretty good risk reward on a
reversion to mean setup. I like to do things in pieces, so I will
usually sell some there and trail the rest like anything else I'm
doing. I was buying LABD in $16s when XBI was double topping as
Steve pointed out.
Locked down some daily profits LABD 18.35 from 16.15, bought
some replacement LABU I sold in 12.80s at 11.30. Still net short
just not as heavy as when things were stretched. Trailing
now
Posted by DigiNomad on 11th of Aug 2022 at 12:01 pm
Fundamentalvalues - of course, always stick with what works for
you. However, from my perspective, in an ETF it seems that you give
up the power of premium (I prefer to sell it) and you're stuck with
mostly directional trading. Yes, you're both long and short so you
have a sort of "spread" on. But you have to do it "at the
money"....which seems to add a lot of risk. Interesting approach
though. I know the creators are using futures and options for the
product, so I'll have to think about when it might not act how you
expect it to act, since the underlyings are a bunch of derivatives.
For the bear side, I would be surprised if you get your 3X
protection on BIG down days with spiking Vol.
It acts fine, been doing it a long time. I prefer trading this
way. Was never successful with options as they are too volatile for
me. I have a friend who does stuff that isn't proximal and income
stuff like you're talking about and is very good at it. I may have
to try and do some small fishing to see if I like it.
If its not broke I can't fix it though. I've found that sticking
to my lane and not breaking my mandate have been important. Anytime
I try and be someone else or use their strategy, I lose money. Pros
and cons to each strategy. What matters is that whatever we are
doing is working. I appreciate you sharing yours with me.
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interesting. what type of spread
XBI 60
Posted by psider on 11th of Aug 2022 at 11:44 am
interesting. what type of spread did you put on?
I use the etfs in
Posted by fundamentalvalues on 11th of Aug 2022 at 11:50 am
I use the etfs in an allocation percentage, so rather than using options, I like the 3xetf as a rolling option that I can trade day to day.
So example would be 60% LABD vs. 40% LABU. I use the same principles, buy supports, and sell resistances on both sides. It has been very effective for me. A great trader told me once, when your emotions are lying to you, take a step back and look at the chart.
Right now LABD is just crossing the 5 day moving average at $17.37 and the 9 day is up at $20.81. Pretty good risk reward on a reversion to mean setup. I like to do things in pieces, so I will usually sell some there and trail the rest like anything else I'm doing. I was buying LABD in $16s when XBI was double topping as Steve pointed out.
Locked down some daily profits
Posted by fundamentalvalues on 11th of Aug 2022 at 03:22 pm
Locked down some daily profits LABD 18.35 from 16.15, bought some replacement LABU I sold in 12.80s at 11.30. Still net short just not as heavy as when things were stretched. Trailing now
Fundamentalvalues - of course, always
Posted by DigiNomad on 11th of Aug 2022 at 12:01 pm
Fundamentalvalues - of course, always stick with what works for you. However, from my perspective, in an ETF it seems that you give up the power of premium (I prefer to sell it) and you're stuck with mostly directional trading. Yes, you're both long and short so you have a sort of "spread" on. But you have to do it "at the money"....which seems to add a lot of risk. Interesting approach though. I know the creators are using futures and options for the product, so I'll have to think about when it might not act how you expect it to act, since the underlyings are a bunch of derivatives.
For the bear side, I would be surprised if you get your 3X protection on BIG down days with spiking Vol.
It acts fine, been doing
Posted by fundamentalvalues on 11th of Aug 2022 at 12:06 pm
It acts fine, been doing it a long time. I prefer trading this way. Was never successful with options as they are too volatile for me. I have a friend who does stuff that isn't proximal and income stuff like you're talking about and is very good at it. I may have to try and do some small fishing to see if I like it.
If its not broke I can't fix it though. I've found that sticking to my lane and not breaking my mandate have been important. Anytime I try and be someone else or use their strategy, I lose money. Pros and cons to each strategy. What matters is that whatever we are doing is working. I appreciate you sharing yours with me.