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You can hold it for more than a day, but the longer you hold it the less it will resemble the returns of the underlying. If the underlying consistently goes up, it will go up by much more due to the compounding. If the underlying consistently goes down, it will go down by much more. If the...

Leveraged funds do not work like normal stocks or ETFs. They are only meant to track the leveraged return of a fund for the day, not for any period longer than that. Over extended periods of time they drift toward 0, due to a phenomenon known as volatility decay. This happens because a move down...

You still have a chance to get into LTC below $100. Mark my words, it’s going over 100 soon. Halving coming up very quickly and bullish news abound. It may all be magic voodoo internet money but that doesn’t change the technicals and how enthralled people (including institutions) are into this...

I think you should heed the advice given to you to work on your own psychological issues instead of pursuing automated trading. What you are experiencing is what many experience, you may be able to predict moves with great accuracy but unless you learn to manage your own emotions and risk...

To each their own. I think the bull case for crypto has never been stronger than it is right now. You have TD Ameritrade testing BTC and LTC trades on their platform, NYSE getting involved with Bakkt, and ErisX set to release some time this quarter. There are also rumors that Samsung and Nike...

I hope you got a chance to pick up some cheap crypto! I got some LTC at $70, this market is way more bullish now than most are giving it credit for. The bears who didn't get out on that dip are going to start sweating soon.

Every issue with Tether in the past has ended up being a buying opportunity for Bitcoin. I highly doubt this time will be any different. Many of the articles about this debacle are mischaracterizing the exact nature of the transaction. Tether loaned the money to Bitfinex at a rate of 6.5% with...

This is inaccurate. Someone doesn’t have to buy the inverse ETF for it to go up. Those funds normally have short exposure to some kind of derivative. The reason these ETFs usually lose money over time, even when the market is going down, is that markets very rarely just drop for days. The...

All three of these claims are false in my opinion. Bank accounts can be hacked. Credit Card fraud is a major issue for both retailers and other financial institutions. Fiat currency may be safer for the average person but if you practice appropriate cold storage there is very little chance...

Dynamicvol on twitter did a backtest on what the new version would have looked like going back to 2004 using the index values. I thought the comparison was pretty interesting.

ProShares Slashes Leverage on Surviving Volatility Products Proshares came out with news last night that they are reducing the leverage of SVXY from -1x to -.5x and UVXY from 2x to 1.5x. This will have a major effect on these products, especially the options. Some of the longer term OTM...

They have just announced that the leverage is lowering from -1x to -.5x. The IV has halved in the options as a result. Be careful about using expectations from the past to trade this now. https://www.bloomberg.com/news/articles/2018-02-27/proshares-slashes-leverage-on-surviving-volatility-products

It states in the prospectus that this product was not meant to last. Even if this event hadn't happened the note would have matured in 2030 and the product would have been dissolved. Here is an excerpt from the prospectus: "The ETNs are riskier than securities that have intermediate or...

Do you not find that the Beta Slippage caused by the way they rebalance and the leverage that they use make up for it's short comings? With VIX options, you have to be right on all aspects of the trade and moves against you do not work in your favor. Over a month or longer period of time with...

Thank you for that report! Very interesting information. I had read about that phenomena at one point awhile back but it has obviously gotten worse than I had realized. This bit suggests to me, however, that this was all the levered and inverse vix products together. It's an interesting...

I'm not quite sure what you are trying to say here. Can you give a little more detail into your thought process? My initial impression is that you are referring to the fact that depending on where the VX futures are at (10, 20, 30... ect.) this dramatically changes what will be a 100% gain (or...

I'm not sure if anyone has told you this yet, but the quotes you are probably looking at are the % values from yesterday's close. The SVXY opened this morning at 12.28 and is now at 12.63 (a 2.9% gain) and the UVXY opened this morning at 18.75 and is now at 17.4 (a 7.2% loss). These ETFs only...

Also, I didn't start this thread to be a dick to anyone or rub anyone's losses in their face. I am truly sorry if anyone lost a substantial amount of money in this flash crash. With that being said, they should still brush themselves off, admit they didn't have a clear grasp of the risks of what...

Do you have a source or any hard evidence that they were the direct cause of the spike? It could have just as easily been a larger hedge fund manipulating the AH similarly to how settlement was manipulated over the past few months. However, in those cases most of the crowd was short and the VIX...

I have seen many people on ET and Twitter talk about how terrible these two products are and how stupid people were for trading them in the first place. This is a flawed line of thinking. These products were very open and transparent about their goals, holding a 30 day rolling maturity of short...