Well, if you wanted to risk 2% per position, you could trade 50% of your money if you had a 4% stop (on your trade setup, assuming no leverage). I like John Carter' idea of determining the size of the stop based on your trade setup and THEN adjusting the amount of money you trade so you're only risking a certain amount. (BTW, I ended up using John Carter' book to develop my own trade setups since I examined his and they didn't seem to work that well but I like the parameters anyway). Anyway, I wanted to know if anyone knows of anything like the QLD or SSO but that would be triple leveraged. Also, what is the leveraged DIA? If I'm correct, QLD=twiceQQQQ, SSO=twiceSPY but the DIA=twice???
Because they use credit default swaps to get that additional leverage. It's counterparty risk that is the issue. What if the ETF had a CDS with lehman....:eek:
Well what happens to your account when ES opens at 820.00 on Monday morning....Most likely if you use leverage your account is blown up. So leverage DOES matter.
http://www.proshares.com/funds Alittle more than Half way down the page -"Ultra Style" Triple Lev is news to me thou
DDM - Ultra Dow 30 DXD - Ultra Short Dow 30 SSO - Ultra S&P 500 SDS - Ultra Short S&P 500 Hope this helps. Regards, T http://actionpointsta.blogspot.com/
Thanks. Yeah, I just found a list. These are a cool idea. http://etf.stock-encyclopedia.com/category/leveraged-etfs.html I"m amazed PBW (the clean energy ETF) is down so far. EDIT: Too bad I can't find a global hedge fund ETF. I know hedge funds are limited to 99 investors but I saw a chart (in the book Inside the House of Money) where they show the difference between the S&P 500 and a global hedge fund index and the difference is amazing.
Welcome to the latest chips in our casino! I normally trade SSO (Double Long instead of SPY) UWM (Double Long instead of IWM) DIG/DUG ( Leveraged Long /Short based on $OSx/$OIX) QLD (Double long QQQQ) last Friday I tradesd successfully BGU (Triple leveraged Long big cap) ERX (triple leveraged Energy Long (better than even DIG!) ) TNA ( Triple leveraged Russel 2000- better than even UWM!) The trick is to play small - ladder in and ladder out!
Those last 3 are brand spanking new? What's the spread on 'em? I ask cuz I think I'd wait a few months to bother with them, to build some volume. Personally I only trade UYG right now - 2x financials. Never more than a .01 spread, huge volume, and price doesn't "jack" up and down every split second. rather price moves smoothly up or down, very easy to read.