short short etf + short long etf

Oldtime, you are right.

I trade mostly vstoxx future spreads. I like butterflies to trade the term structure. Pricey, but good risk/reward.
Otherwise I like to trade calendar spreads on Dax and Eurostoxx 50 options.If I win a bit on the long vol, I convert into a put credit spread or call debit spread slightly otm with the idea that vol will come down a bit again and price will go up. Currencies and metals, especially copper gives a good heads up on coming vol.

Outright, I am a chicken.
 
Quote from Sundog:

I found some info on that topic.

http://falkenblog.blogspot.de/2011/10/shorting-leveraged-etf-pairs.html

http://www.slackerwealth.com/2009/03/risky-leveraged-etf-arbitrage-strategy.html
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if you are spreading, trading costs are the least of your concerns. Since the beginning of time, that has always been the objection of outight traders.

Spreading is a very messy business, and isn't going to be decided by a few trading costs.

To call it arbitrage is really an overstatemet. That's what smart people with computers do.

But then again, I have only been trying to spread forex for the last year or so, so I have a hell of a lot more to learn than I have to talk about.
 
Quote from Sundog:

Oldtime, you are right.

I trade mostly vstoxx future spreads. I like butterflies to trade the term structure. Pricey, but good risk/reward.
Otherwise I like to trade calendar spreads on Dax and Eurostoxx 50 options.If I win a bit on the long vol, I convert into a put credit spread or call debit spread slightly otm with the idea that vol will come down a bit again and price will go up. Currencies and metals, especially copper gives a good heads up on coming vol.

Outright, I am a chicken.
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well the problem with outright is you get stopped out on any big move

Don't get me wrong, I actually made a living scalping that ES, but after five years off, I started fooling around with that ES vs YM spread. Nothing ever came from it, but in retrospect, my life expectancy would be about twice as long if I had figured that out when they first invented YM.
 
Ok, I´ll give some food for thought.

Everybody knows AUD/JPY is inversly correlated to USD/CAD.

Just take into consideration one more currency.

Trade AUD/JPY + EUR/USD against USD/CAD. Sure, you will find out the rest. What if you multiply the 3 currencies ?

Cheers
 
I was off as well a long time, started last year again. I still work in a job, which I like.

Scalping is psychologically so intense, I am not able to do that. Well, maybe I never tried it with full motivation.
 
Quote from Sundog:

Ok, I´ll give some food for thought.

Everybody knows AUD/JPY is inversly correlated to USD/CAD.

Just take into consideration one more currency.

Trade AUD/JPY + EUR/USD against USD/CAD. Sure, you will find out the rest. What if you multiply the 3 currencies ?

Cheers
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you so sure about that aud.jpy? I guess different strokes for different folks. That's what makes a market.

I'm getting killed on this short usd, because there is nothing decent to short it against.

That's what happens when you depart from spreading and go outright. I could have made a killing if I was right, but I was wrong and got killed.

So yes, I like being long something and being short something else, you can always fix it in the mix. They won't write books about you, but you can pay a few bills.
 
Since i do not trade forex anymore.

Well, but I still use currencies an indicator for equities.

What I did, trading aud/jpy + eur/usd vs. usd/cad

Example:
Buying 10000 units aud/jpy + 10000 units eur/usd + 22500 units usd/cad. 22500 because the pip size for Aud/jpy is 12.6 and usd/cad at that time was about 1.1.
Interest was canceled out in that trade recently !
If you multiply the 3 currencies as an indicator, long term below 100 is dirt dirt cheap. That was 2009 during the crash!

Otherwise nice to know US DollarIndex is almost the inverse to Eur/Usd (1/USD Index)*100 equals rougly Eur/Usd, since it is roughly 60% of the index. Idea could be to trade
USDollar Index futures or whatever, maybe an ETF vs. Euro/Usd.

Try it in an paper account if you dont trust the whole idea.

Good Trading!
 
Also nice to know usd/cad is inversly correlated to equites.
Ergo:
Aud/Jpy + Eur/Usd higly correlates with Equities.

Aud/Jpy is tracked as risk On/Off indicator for equities since it is one of the carry trade currencies.
The Nikkei also higly correlates with Aud/Jpy.
Japan is a huge importer of commodities from australia and oil from canada and the us. Oil price below present Aud/jpy price is dirt cheap for me as well.

No Liability assumed ! :)

Freestockcharts.com is always good for quick overview.
 
yeah, that's not very different from what I do. Now you are making me worried, because you don't sound very profitable or experienced.
 
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