Enjoyed reading this Ken. I have followed the trend/performance of a few pairs for the past 10 years & convinced a long [historical] hold say $10k in each pair set is a no-brainer, no loser. example as seen in https://www.stocksplithistory.com/?symbol=tqqq https://www.stocksplithistory.com/?symbol=sqqq Same for UPRO/SPXU, UDOW/SDOW. The benefit that I see from playing long in these pairs is in the splits as well as after each split there are several exit opportunities of the peaks & valleys. Take recent times taking Jan 2, 2020 a $10k play in TQQQ/SQQQ, today you'd be down a bunch, approx 15%by my calculation. So its not always +/- percentage difference = 0 or zero sum. Because each pair are at different prices, I see the long play based purely on the historical performance of the indices (DOW, NASDAQ, S&P) that an equal dollar investment in each the leveraged 3x pairs that long term is a no-loser. except the SVXY/UVXY pairs never did work out, a loss on both sides Folks might say 'why not simply buy & hold just the index & ride the wave', sure that works also especially adding in long ATM covered calls. As for day/week trading the pairs I think its difficult to get in done right & timing. Although considerable guesswork/timing when doing this in the expiring options week
@Ken, for information, education & reference purposes only there was an old timer that had a successful Algorithm model for ETF arbitrage pairs trading. historical posted daily performances https://www.roebucksystems.com/historicaldata.html Even though the website is still up, I think his program is down
%% That's strange; but not surprising= you made a lot more on TQQQ, than SQQQ, with TQQQ being the smaller position.[I see now that is SEPT, I was thinking TQQQ/$60s=this week .LOL] FRI-MARCH 18/2020
@Ken, if it's not too personal & you wont mind posting (otherwise ignore this request) - with your personal day/swing trading of the leveraged ETF, taking into account all the work & effort that you put into it with the profits/losses, what is your average year over year performance %, not dollars?