Kevin_in_GA
4,599 posts
msg #136300
- Ignore Kevin_in_GA |
6/11/2017 7:52:19 AM
Possibly, but that makes you unidirectional in that specific asset class and potentially vulnerable - example would be LABU and LABD. At the start of the year you would be in LABU as it had the higher price, and it has just kept rising (you would be down 57%). As a pair trade you would be only be down 2.1% YTD, although some rebalancing should have been done for differences this large.
The approach in my thread (not mine, just testing it) uses the structural inefficiencies of these ETFs to generate profit, but pairs them to avoid large runs against you. However, there are lots of ways to make money and this is more of a slow and steady strategy than catching and riding one wave.
|
shillllihs
6,002 posts
msg #136302
- Ignore shillllihs
modified |
6/11/2017 3:50:06 PM
Still think it's interesting to look into. Labu Labd did not have a huge differential.
The best example of a huge differential would be SKF/UYG in 08. You can see how much SKF dropped & how high UYG has gone. I'm aware of splits and all but in general across the board there seems to be a bias. If you want to do this safely one can try it with a basket of ETFs . I am already shorting Dslv & will add Jdst.
But then again, doing it my way or with pair trades, you will get shelled if what happened to finance(skf) in 08 happens again, I believe a 300% move up, so pair trades is not safe. But on the other hand, UYG has had a 18 times return.
|
shillllihs
6,002 posts
msg #136317
- Ignore shillllihs |
6/12/2017 11:48:21 AM
DGLD 47.88
DSLV 25.50
Switched from the boring Slv to these, who was I kidding by thinking I could move that slow.
Now gotta pack for Paris.
|
shillllihs
6,002 posts
msg #136371
- Ignore shillllihs
modified |
6/14/2017 1:54:21 PM
What a joy here in Paris, already saw the Arc, Tower, Louvre & Notre Dame.
But best of all DSLV DGLD down BIG.
Had a beautiful meal with escargot & nice wine, & ready to try Greek town in Paris
then more gutt wrenching love making with the Filipina wife. I mean that in a good way. ❤️️👄
|
shillllihs
6,002 posts
msg #136386
- Ignore shillllihs |
6/15/2017 1:23:44 PM
Lovely day today at Montmartre, though really tired from climbing stairs.
LONG UWT looking good.
|
shillllihs
6,002 posts
msg #136388
- Ignore shillllihs |
6/15/2017 2:31:47 PM
SHORT TVIX 23.09
|
shillllihs
6,002 posts
msg #136391
- Ignore shillllihs |
6/15/2017 6:50:26 PM
The Paris Mystique has worn off, can't wait to get home. You see the Arc de Triomphe more than once, you feel like you're at Disney. Standing under the Eiffel Tower is spell bounding but I've had enough. Today was great in Montmartre though. Most of Paris is not quaint, it's more like New York with some nice architecture. The streets are not filled with music. There is no signature French food here, it almost all sux, just burgers and tough steak. Did have the most amazing ravioli in chive cream sauce today though. What an overrated city. Greece rocks 10 times more.
|
shillllihs
6,002 posts
msg #136409
- Ignore shillllihs |
6/16/2017 11:09:00 AM
Brilliantly put a buy to cover on TVIX at open.
Xiv about to drop dramatically.
Just bought 6k worth of LOUIS VUITTON for the wife. She'll resell on layaway for nearly double.
|
shillllihs
6,002 posts
msg #136412
- Ignore shillllihs |
6/16/2017 11:41:48 AM
GDXJ LONG 32.66
|
shillllihs
6,002 posts
msg #136416
- Ignore shillllihs |
6/16/2017 6:16:13 PM
GDXJ 33
My God, in Paris and still making money.
|