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Hi
Bob,
You
are the second person who asked me this question, so I must assume it is really
a daft idea:)) I was really thinking of protecting an overnight position at
first entry.
Giving up on that idea:)
Thanks
Kate
I am curious as to why you would
bother to hedge a ES position. Why not simply exit and get back in when you
would remove the hedge?
The ES has lower bid/ask spreads and
commissions than the ETF's also.
In any case, either should be similar
since they probably are developed using futures.
The portfolio (cyan
curve) of Long ES hedged by a long position in the UltraShort S&P ETF
(SDS) is shown the "RealTraders.04" picture attached. The optimum spread ratio
varied slightly from the ideal .66666/.33333 weighting as you can see on the
lower subgraph (magenta).
The portfolio (cyan curve) of Long ES hedged
by a long position in the Ultra S&P ETF (SSO) is shown the
"RealTraders.05" picture attached. Again, the optimum spread ratio varied
slightly from the ideal .66666/.33333 weighting as you can see on the lower
subgraph (magenta).
Bob Fulks
At 09:05 AM 2/4/2009, you
wrote:
I would like to hedge my future positions using
ETFs/Trakkers. Trade the ES (SP mini only), and would appreciate some
suggestions of which to use.. 2x or 3x, specific symbols with good volume
for Long and Short. Is it better to enter a position using the symbol chart
or the futures chart?
From what little I understand some
do not track accurately..so would prefer advice to finding out the hard
way:)0
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