Monday, March 24, 2014

Counter-Trading Triple-leveraged ETF's

An idea that has been on my mind for quite some time.

Just a thought, if we had a 50k position in both direxion daily gold - DUST & NUGT

Stop loss: 1.5%

DUST Open: $22.1
DUST Stop: $21.76

NUGT Open: $42.34
NUGT Stop: $41.71

This is the entry data with a stop-loss. Let's look at the chart how it would have worked out today:



Well, in NUGT we would be out of the position in the first 10 minutes of trading.

If I had been in DUST, I would exit right now.

Let's look at the numbers:

NUGT: 50,000*0.985=$49,250 or 750$ loss

DUST: 50,000*1.1324=$56,620 or $6620 gain

DAY TOTAL PROFIT: 5850$ 

Not bad at all.....

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