Billy; Yesterday and today the Robot maintained the stop for the trade initiated on 6/10 at 76.97. This translated to 65.82 for TNA yesterday. Today it translates to 65.72 which would involve lowering the TNA stop. In these instances that call for TNA stop lowering should the Robot be ignored?
Thank you in advance.
Best regards,
Robert
Correction: "...does it play an important part..."
Meant "...does it play any part..."
Robert,Originally Posted by brrim
This issue will ever be recurring and I repeat that I am against providing indicative limits and stops for related ETFs!
These are kindly provided by Pascal based on the volatility correlation between the instruments. With the way triple leverage ETFs are adjusting daily with a decay or compounding factor, it is normal that their volatility is varying daily from the correlation with IWM. The actual stop is not changed. If IWM stop is hit, you get out of TNA whatever the indicative TNA stop. Period.
Billy
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