Battle between Bulls vs Bears: ETF hedge strategy

Discussion in 'ETFs' started by KCalhoun, Jun 3, 2020.

  1. It is a risk, however more often it comes with a few %% rise as market starts and this is win win situation as of now at least. You have over 50% win chance and this is winning strategy.
    Besides I’m evaluating the right price. Even when I’m down it will reverse and I will sell it profitable. Works for me so far this year all my negative mistakes I fixed.
    Was doing inverses as well, stopped when figured out less chance to profit.
     
    #11     Jun 3, 2020
    KCalhoun likes this.
  2. KCalhoun

    KCalhoun

    Right, it may be better for daytrading, eg I went long DUST earlier today, tightened trailing stop, and put in buy stop order for opposing GDX in case it bounces, as a hedge, later today.

    The key for daytrading these is they should be trading outside prior days range, like TVIX/SPXL GDX/DUST
     
    #12     Jun 3, 2020
    1957may10 likes this.
  3. So look what inverses are doing now....unless you are buying now, I bought a little just in case.
    Sucks your gain. My point if price stock, etf is correct even when you lose you will win later in this volatility.
     
    #13     Jun 3, 2020
  4. When you swinging you should consider yesterday’s 5 10 ema, sma. Swinging on day volume not always works, works today perfect ;)
    Still got
    M 8.6%
    Kss 7.8%
    Ccl 3.3%
    Will see eod what to sell.
     
    Last edited: Jun 3, 2020
    #14     Jun 3, 2020
  5. deaddog

    deaddog

    Can you walk me through the strategy with GDX/DUST?

    You buy both at the open, then how do you determine when to sell one and scale into the other?

    What kind of position size do you scale, compared to your original purchase?
     
    #15     Jun 3, 2020
  6. KCalhoun

    KCalhoun

    Sure, no re buying both at open, I put in buy stop orders for both slightly above opening price, eg 30 to 70 cents on average.

    One of them gets filled. I use OTO conditional orders with 1 point trailing stop initially, after it moves up I tighten to 30 cent trailing stop.

    I also tighten up entry on opposing ETF. If initial one eg DUST keeps running up I double size eg 70 cents to $1 above first entry

    It's a work in progress, testing params
     
    #16     Jun 3, 2020
    murray t turtle and 1957may10 like this.
  7. I like pare Gdx - dust.
    I trade gdx a lot at some poin switched to gold (barrick mining).
    What do you think about gold - dust pare.
    My point when gold starts to rise barrick stocks more dinamic to grow vs gdx etf.
    Btw it’s turned back I bought addition below 23 and I’m gaining now.
    Pls show your t/as for gdx vs dust, I like it, but want to weigh gold vs dust.
     
    #17     Jun 3, 2020
    KCalhoun likes this.
  8. KCalhoun

    KCalhoun


    Good point, I'll test GOLD vs DUST as well, I used to trade abx, lots to choose from like NUGT JNUG JDST though I prefer ones under 40
     
    #18     Jun 3, 2020
    1957may10 likes this.
  9. deaddog

    deaddog

    Any reason or just a throwback to a time when it was more convenient to trade board lots?

    Do you find 20 to 40 dollar stocks have a better percentage move or is it just habit?
     
    #19     Jun 3, 2020
  10. KCalhoun

    KCalhoun


    Some of both; 20-40 has a good balance between leverage/% and volatility
     
    #20     Jun 3, 2020