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The ACD Method
- Thread starter sbrowne126
- Start date
Mav,
I have read every post in this thread and I have a question about ETFs.
I notice that you routinely recommend the ETF rather than the related Futures contract. I have been looking at the pros and cons of ETFs, and my understanding is;
Pros - Flexible position size (and all that implies)
Cons - Does not always correlate very closely with the related Futures contract
Some will decay if held too long, not sure how long is too long though.
My interest is straight directional plays based on ACD, as well as spreads which I see Shan is quite involved with. I am looking at swing trading, not position or daytrading.
Could you tell me why you favour ETFs, and if my understanding of the Pros and Cons is correct?
Also, the ETFs listed below have been mentioned in this thread. Would all be suitable for swing trading?
BAL, CORN, COW, DBA, EEM, FLAT, FXE, GLD, GLTR, IBB, JJC or FCX, JO, PPLT, SGG, SLW, SLX, SPY, STPP, TBT, TLT, UNG, USO, XLE, XLF, XLV, XLY
I have read every post in this thread and I have a question about ETFs.
I notice that you routinely recommend the ETF rather than the related Futures contract. I have been looking at the pros and cons of ETFs, and my understanding is;
Pros - Flexible position size (and all that implies)
Cons - Does not always correlate very closely with the related Futures contract
Some will decay if held too long, not sure how long is too long though.
My interest is straight directional plays based on ACD, as well as spreads which I see Shan is quite involved with. I am looking at swing trading, not position or daytrading.
Could you tell me why you favour ETFs, and if my understanding of the Pros and Cons is correct?
Also, the ETFs listed below have been mentioned in this thread. Would all be suitable for swing trading?
BAL, CORN, COW, DBA, EEM, FLAT, FXE, GLD, GLTR, IBB, JJC or FCX, JO, PPLT, SGG, SLW, SLX, SPY, STPP, TBT, TLT, UNG, USO, XLE, XLF, XLV, XLY
Quote from justrading:
Mav,
I have read every post in this thread and I have a question about ETFs.
I notice that you routinely recommend the ETF rather than the related Futures contract. I have been looking at the pros and cons of ETFs, and my understanding is;
Pros - Flexible position size (and all that implies)
Cons - Does not always correlate very closely with the related Futures contract
Some will decay if held too long, not sure how long is too long though.
My interest is straight directional plays based on ACD, as well as spreads which I see Shan is quite involved with. I am looking at swing trading, not position or daytrading.
Could you tell me why you favour ETFs, and if my understanding of the Pros and Cons is correct?
Also, the ETFs listed below have been mentioned in this thread. Would all be suitable for swing trading?
BAL, CORN, COW, DBA, EEM, FLAT, FXE, GLD, GLTR, IBB, JJC or FCX, JO, PPLT, SGG, SLW, SLX, SPY, STPP, TBT, TLT, UNG, USO, XLE, XLF, XLV, XLY
I don't know that there is a real structural advantage to ETF's over futures. But here are some of the things to think about. One is obviously size, futures are much larger positions. Harder to scale.
Futures are broad based. ETF's often give you the chance to get more detailed exposure. For example, you could be long ES futures or in the ETF world you could specifically be long financials. Or even more specifically regional banks.
ETF's you don't have to roll. Of course you still pay for the roll, but it makes charting easier to look at one product.
The advantages to futures are obviously the tax benefit if you are doing really well. They trade 24/7 for the most part. And you get much better margin on the retail level as well as risk based margin on the option level.
I don't think one is easier or harder to trade if you are properly capitalized.
Quote from Maverick74:
I don't know that there is a real structural advantage to ETF's over futures. But here are some of the things to think about. One is obviously size, futures are much larger positions. Harder to scale.
Futures are broad based. ETF's often give you the chance to get more detailed exposure. For example, you could be long ES futures or in the ETF world you could specifically be long financials. Or even more specifically regional banks.
ETF's you don't have to roll. Of course you still pay for the roll, but it makes charting easier to look at one product.
The advantages to futures are obviously the tax benefit if you are doing really well. They trade 24/7 for the most part. And you get much better margin on the retail level as well as risk based margin on the option level.
I don't think one is easier or harder to trade if you are properly capitalized.
Thanks. Interesting point about the detailed exposure.
not ACD worth checking out imho
http://www.bigmiketrading.com/webinars/may30_2012/futurestrader71_review/
http://www.bigmiketrading.com/webinars/may30_2012/futurestrader71_review/
Quote from DT3:
Mav what are your monthly levels for nat gas, its been on a nice tear lately.
Ask and you shall receive...
2.63 and 2.95
We bounced off the failed monthly A down and shot straight up through the monthly A up.
Monthly number line +7
5 day number line +5