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Fred,
>From this, do I understand it correctly that one can't go
short on MF's? Why would one be sitting on cash otherwise?
Or may be I'm not following what you said below...
Jitu
--- In amibroker@xxxxxxxxxxxxxxx, "Fred" <fctonetti@xxxx> wrote:
> One other note regarding short term trading ... There are of course
> ways to accomplish the same thing with out actually taking the
short
> term trades i.e. by hedging using a bear oriented fund leaving you
> more or less market neutral during the period of time when you
would
> have been sitting in cash.
>
> --- In amibroker@xxxxxxxxxxxxxxx, "Fred" <fctonetti@xxxx> wrote:
> > 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
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