|
PureBytes Links
Trading Reference Links
|
See below ...
--- In amibroker@xxxxxxxxxxxxxxx, "Chuck Rademacher"
<chuck_rademacher@x> wrote:
> Maybe some of you guys (and gals) who trade mutual funds can answer
a couple
> of questions?
>
> 1. If there's no money to be made in (rotational trading of)
ETF's, am I
> correct when I assume that there's no money to be made in the Rydex-
like
> funds that only mimic an index?
>
Rydex's funds are pretty much either index or sector oriented. This
is not the kind of thing I personally like to trade. But for example
if you have a system that trades SPX, NDX or RUT well or is good at
jumping on the sector that's likely to be hot next as opposed to the
one that just was then it would certainly work in this scenario.
> 2. Based on current rules and redemption penalties, which families
of
> mutual funds can you recommend for rotational trading?
>
I don't personally trade on what one would consider to be a
rotational basis. As I and Ken stated, erf's or the funds management
policies will eventually weed out most if not all the short term
traders, especially the ones with large dollars. So if you are
looking to trade mf's with some sort of short term oriented
rotational system as opposed to one that trades on an intermediate
basis picking good candidates at the beginning of a market buy and
for the most part holding them until a market sell then you are going
to find yourself pretty much limited to Rydex, ProFunds & Potomac.
> 3. If most (or all) such families of funds charge early redemption
fees, is
> it safe to assume that you are trading these mid to long term?
>
> There's no sense in me working on a system that appears to do well,
only to
> find that redemption fees are going to kill me. Or, is it
possible that
> there's enough money to be made that the fees are of little
consequence?
>
Most do NOT yet charge erf's and as you can see from prior posts it's
debatable as to whether or not they will and if so what the minimum
holding periods will be to trigger those. For short term oriented
traders adding a 1-2% erf in a 7-14 day period would be enough to
send them elsewhere or to a different methodology. What the SEC or
the fund companies themselves will do with this remains to be seen.
They really can't afford to be too outrageous with it as every
401k/IRA/VA account holder on the planet will be screaming bloody
murder.
> Out of all of the above, I'm really interested in some
recommendations on
> mutual fund families to trade. I can then go do my own
investigation as to
> their fees, etc and devise my own systems that will work with those
fees.
>
I wouldn't think families as there is no real reason to just like
there is no real reason to arbitrarilly limit ones trading in stocks
to some specific group based on whatever.
> Thanks
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for your HP, Epson, Canon or Lexmark
Printer at MyInks.com. Free s/h on orders $50 or more to the US & Canada.
http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/mOAaAA/3exGAA/qnsNAA/GHeqlB/TM
---------------------------------------------------------------------~->
Send BUG REPORTS to bugs@xxxxxxxxxxxxx
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
-----------------------------------------
Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx
(Web page: http://groups.yahoo.com/group/amiquote/messages/)
--------------------------------------------
Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|