Billy,
can I please ask you a confirmation: the stop loss for today's robot trade should be raised taking into account the opening gap up, right?
Billy,
can I please ask you a confirmation: the stop loss for today's robot trade should be raised taking into account the opening gap up, right?
Slope of Hope by Tim Knight shows some very interesting analysis that accords strongly with Billy and the robot. It also shows an interesting take on AAPL and its relation to market take downs.
Also, I find it entertaining as well as educational.
I found the first link via "the wire" service of Charles Kirk.
Cheers!
(ps. if it preferable that this go in the "interesting links" thread, I'll move it. I put it here because we sold into some serious strength this morning, which naturally raises doubts).
Last edited by nickola.pazderic; 09-27-2011 at 03:33 PM.
Billy -- any chance we're becoming a target of an HFT? Don't want to sound paranoid here...
Was sorry to see the IWM stop just before the drop.
These HFTs are getting better all the time.
I dont think the robot got stopped out. The stop should have been adjusted to take into account the gap up if I remember correctly.
Pascal/Billy or anyone,
I'm having a hard time understanding why the triple returns of TNA/TZA differ so much from IWM returns. It certainly varies for the time period selected. For the last 12 months IWM was basicaly flat with TNA down 20% and TZA down 40%.
One year return
IWM
TNA
TZA
From July 1st to close on Friday
IWM
TNA
TZA
From Jan 1st to close July 1st
IWM
TNA
TZA
[QUOTE=davidallison@shaw.ca;17116]Pascal/Billy or anyone,
I'm having a hard time understanding why the triple returns of TNA/TZA differ so much from IWM returns. It certainly varies for the time period selected. For the last 12 months IWM was basicaly flat with TNA down 20% and TZA down 40%. ]
David, this is due to the well documented leverage decay effect. See for example:
http://www.etfbase.com/leveraged-etf-decay/ or google for oher articles on leverage decay.
The smart way to play decay to your advantage is to short TNA instead of buying TZA or to short TZA instead of buying TNA.
Billy