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<FONT face=Arial color=#0000ff
size=2>Jitu,
<FONT face=Arial color=#0000ff
size=2>
You
may not be aware, but there are some mutual funds (Rydex, ProFunds) that when
you "buy" them, you are effectively taking on a "short"
position.
<BLOCKQUOTE
>
<FONT face="Times New Roman"
size=2>-----Original Message-----From: jtelang
[mailto:jtelang@xxxxxxxxx]Sent: Friday, November 14, 2003 10:11
PMTo: amibroker@xxxxxxxxxxxxxxxSubject: [amibroker] Re:
Trading mutual funds...Fred,From this, do I
understand it correctly that one can't goshort 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.> > > > > ThanksSend
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