trade ratio pairs...FAS and FAZ, DDM and DXD...
Also throw in options into the mix...once you have the ratio you are comfortable with...you can make money with limited risk
What's going on now...is the treasury is printing money...and the more they print...the less attractive treasuries get..so when and if yields do go down...that would be an opportunity to get more of TBT...( Case in point worst case scenario -- U.S. goes bankrupt or the treasury defaults...people...
I trade pairs.. I bought 1000 UYG which is a 2x and sold puts on FAZ...the premiums are great...and so is the hedge..
Another trade I put on is buying FAS with out of the money covered calls...and selling next month puts on FAZ....so far making money and not getting hurt by extreme volitily...:D
I trade TBT but not against SPY or any other ETF...although you could also short TLT.. Bottom line any time the 30yr yield approaches 3 % or lower....TBT is a screaming buy..because in the long run. People will not buy long term bonds...for a yield of 3 % or less...in my opinion this is a no...
I have been trading DDM for the long term..but I have also been trading DXD to offset the big moves...I try to trade 3 of every DDM for 2 of DDX and if you include covered calls...money can be made without any substantial risk.