Monday, June 20, 2011

Leverage ETFs in the System…

As mentioned in my last post, I’ve been spending a lot of time developing a system for trading a select set of leveraged ETFs.  Let me start by providing the universe that I’m using for this system.

DDM SMN DIG
DXD SRS SCO
EEV SSO FAX
FXP TWM FAS
MVV URE TZA
MZZ UWM TNA
QID UYG BGU
QLD UYM BGZ
SDS TBT AGQ
SKF MVV  

There wasn’t a lot of criterion for this list, other than liquidity.  There are some general indices, commodities, and sectors; and there are both long and short funds.  But in short, they were chosen because of two reasons: They were leveraged ETFs, and they had good liquidity.

If this list grows, meaning that more ETFs are added, or others gain more trading liquidity, it should be good for the systems.  Generally, more underlying vehicles means more trades, which is all good.  Next time I will share some of the trading results which show why.

Good Trading…

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