Monday, February 22, 2016

A New Start

A few weeks ago I restarted the concept of the Leveraged ETF shortlist.   This time, instead of randomly picking assorted ETFs, I shorted pairs of opposite ETFs.  Things like $NUGT, which is a bull 3X Gold miners ETF, and it's opposite Bear ETF, $DUST.


I will say I was surprised that one day I was able to short $DUST, I hadn't been able to for a long while.  So when it was available, I grabbed it. 


So, as of today, I have 3 pairs, $DUST and $NUGT, $SQQQ and $TQQQ and $VXX and $XIV.  I don't want to have too many, because of the commission cost, but not too few because this strategy isn't flawless.


How can it fail?  If one of the ETFs in a pair falls too much.  I can explain this more some other time.  For now, just know that the best thing to happen is that the funds are volatile and fall equally over time.  As of now, all these pairs are winners.  We will see if that holds up. 


Happy trading.

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