Posted by airstream on 15th of Apr 2009 at 04:32 pm
I have followed them for quite a while now and I don't
find the difference significant for me in my tradeing. I
prefer SRS when I can but can't short SRS in my
vanguard ira account
Yes, that ratio equalizes the shares on a cost basis.
For example if you wanted to trade $100,000 worth of each, the 9
times ratio works. However, I was looking for the
relative volatility of each stock and determine a position size for
URE. Correct me if i'm wrong, but the SRS was down
approximately 5.50 today and the URE was up 42 cents.
That's a 13 times greater move by the SRS than the URE, therefore
I'd consider trading URE 13 times greater than I would SRS to truly
equalize those positions.
Wouldn't the proper way to look at be the percent gain of
each? If wanted to short SRS but couldn't and had to buy URE
instead and if SRS was down 10% (+10% if you were short) and URE
were up 5% then you would need twice as much URE to have the
equivalent gain as being short SRS. Yes/No????
URE and SRS should match either other - eg, if SRS is down 10%
URE should be up 10%. The price $3.43 vs. $30.87 doesn't matter.
The percentage should be the same. They both moved about 15% today
from yesterday's closing price.
One is $30 stock (SRS) and one is $3.00 stock
(URE). Use these as starting %
breakout. I personally do 5 to 1 500 URE to
Every 100 SRS but I'm not a real all in kinda of trader.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
SRS
Posted by airstream on 15th of Apr 2009 at 04:01 pm
Out of SRS short in one account 14 % gain Out URE long in another 13.5 % gain . SRS system is fantastic Thanks Matt
URE/SRS
Posted by steever on 15th of Apr 2009 at 04:11 pm
what ratio would you trade URE to SRS to equalize volatility between the two?
SRS / URE
Posted by airstream on 15th of Apr 2009 at 04:32 pm
I have followed them for quite a while now and I don't find the difference significant for me in my tradeing. I prefer SRS when I can but can't short SRS in my vanguard ira account
ratio
Posted by cdjd on 15th of Apr 2009 at 04:18 pm
the ratio varies over time. At any moment divide SRS price by URE price and round off
example 30.90/3.40 = 9.08823539 so 100 SRS = 908 URE
URE/SRS
Posted by steever on 15th of Apr 2009 at 04:36 pm
Yes, that ratio equalizes the shares on a cost basis. For example if you wanted to trade $100,000 worth of each, the 9 times ratio works. However, I was looking for the relative volatility of each stock and determine a position size for URE. Correct me if i'm wrong, but the SRS was down approximately 5.50 today and the URE was up 42 cents. That's a 13 times greater move by the SRS than the URE, therefore I'd consider trading URE 13 times greater than I would SRS to truly equalize those positions.
SRS/URE
Posted by bgwade on 15th of Apr 2009 at 05:04 pm
Wouldn't the proper way to look at be the percent gain of each? If wanted to short SRS but couldn't and had to buy URE instead and if SRS was down 10% (+10% if you were short) and URE were up 5% then you would need twice as much URE to have the equivalent gain as being short SRS. Yes/No????
URE / SRS
Posted by philr on 15th of Apr 2009 at 05:32 pm
URE and SRS should match either other - eg, if SRS is down 10% URE should be up 10%. The price $3.43 vs. $30.87 doesn't matter. The percentage should be the same. They both moved about 15% today from yesterday's closing price.
URE/SRS
Posted by cdjd on 15th of Apr 2009 at 05:00 pm
during the day twin ultra ETF's do not track perfectly. At the end of day they are better.
Also the minute to minute volatility comes into play (search posts with the word "Algebra" for detail)
the etf's are supposed to track each other in % move (opposite each other) thus
if SRS goes up 2% and then goes down 4% net result is down 2.08%
URE would in theory be up only 1.92% If you do this "up down" a few times during the day the divergence get significant.
One is $30 stock (SRS)
Posted by cspirit on 15th of Apr 2009 at 04:15 pm
One is $30 stock (SRS) and one is $3.00 stock (URE). Use these as starting % breakout. I personally do 5 to 1 500 URE to Every 100 SRS but I'm not a real all in kinda of trader.