|
PureBytes Links
Trading Reference Links
|
Fred & All:
Rydex and Pro Funds have Short funds that you can play the same as a
short. You can switch between there long and short funds on a daily
basis.
Dick H.
--- In amibroker@xxxxxxxxxxxxxxx, "Fred" <fctonetti@xxxx> wrote:
> You can not short mutual funds, but there are some index oriented
> funds typically based on SPX / NDX / RUT that are built to track
> inversely from the indexes themselves. So the purchase of these
> would equate roughly to the shorting of the index.
>
> Someone will undoubtedly come along and slap me upside the head for
> saying this but imho the short side of the market is more difficult
> to play than the long side. There are several reasons for this not
> the least of which is that if for no other reason than inflation the
> bias of the market is from a very long term perspective, up. If one
> were to look at how many up days there were versus how many down days
> one would see that over a very long period of time that the ratio is
> about 60/40. This is easy to see when looking at long term charts as
> the character of bull markts is differnet then that of bears, where
> the former has a tendancy to take a lot longer to move a similar
> distance then the latter when one is looking at environments that are
> of equal degree.
>
>
> --- In amibroker@xxxxxxxxxxxxxxx, "jtelang" <jtelang@xxxx> wrote:
> > 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
------------------------ 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/
|