Short ETFs vs. short an ETF?

Quote from Murray Ruggiero:



Yes you can use system which trade SP500 futures and rework it so that you create a long only and a short only version and trade long version for example on SPY and short only version on SH.
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Thanks for the reply, Murray. Can you please provide examples?
 
Quote from TraderSystem:

Please have a look at the following thread, it might help you:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=143772


I think this system can be modified and used to trade ETFs. Am I correct Murray?
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Yes, it can and in fact I am using a variation of this system in Trading ETF's.

I am also working on a paper on trading ETF's using Future based system which will be released this week to all people registered on TradersStudio.com.
 
I have had several instances over the years of poor execution speed in shorting ETFs. None however had the volume of SPY. My order has also been refused due to "no shares being available to borrow." It was IWM, go figure.
 
Quote from chvid:

Hi.

I have been running an interactive brokers automated trading system for while using the ETFs SPY and SH. Where SH is an unleveraged inverse to SPY.

I use market orders and I trade around 5 times a week.

Using interactive brokers what would be the advantages / disadvantages of shorting SPY instead of going long SH?

Wrt. for example bid/ask spread, order execution, fees and interest.

Is there a preferred way if I wish to take a short position on the S&P500?

-- Christian
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regarding interest, if you are holding overnight with IB, they offer short interest so you would be getting a small % back for your borrowed stocks. for that aspect, it is better to be short SPY though the other factors may make it better to be long the inverse.
 
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