This is more of an educational post, but it also serves as a trading idea.
Costs of derivatives and manager fees make leveraged ETFs have a dangerous time decay. If trading for periods longer than a day, these kick in. How badly they impair performance depends on the volatility of the underlyings, so be careful when trading these. A more clearly trending underlying makes for a safer leveraged play, so, instruments like QLD/QID aren't as affected by this.
You can observe how being short both sides of the coin, can produce a downtrend in the chart, and thus, a safe long term short.
Be careful when trading these for longer than a day, and if trading QLD, or QID, be careful with trades held for longer than a month, or a quarter (I estimate that is for how long they can outperform QQQ).
Cheers,
Ivan Labrie.
Costs of derivatives and manager fees make leveraged ETFs have a dangerous time decay. If trading for periods longer than a day, these kick in. How badly they impair performance depends on the volatility of the underlyings, so be careful when trading these. A more clearly trending underlying makes for a safer leveraged play, so, instruments like QLD/QID aren't as affected by this.
You can observe how being short both sides of the coin, can produce a downtrend in the chart, and thus, a safe long term short.
Be careful when trading these for longer than a day, and if trading QLD, or QID, be careful with trades held for longer than a month, or a quarter (I estimate that is for how long they can outperform QQQ).
Cheers,
Ivan Labrie.
Nota
Another way to put it, this 'portfolio' is up 235% YTD:
Public, timestamped track record. Free month of the desk: ivanlabrie.netlify.app
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Public, timestamped track record. Free month of the desk: ivanlabrie.netlify.app
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.