Little trading strat you can use!

[j6]

I traded, and have traded 4 positions all year w a portion of my account, its about 80k. Nothing special, I just pay attention to the support and resistance levels. Mostly have sold the short side and will re enter the short side when I feel they are over bought. Have added to the long when over sold. The below is my current position(s), cant give you cost basis because Im in and out probably 15x YTD but have been buying UWTI in low 20's and XIV in high teens.

Over all feeling is the below indexes will trend higher and adding a little protection. YTD return is about 38%. Would probably be up much more if I didn't keep buying the down side protection but must hedge the trades at ALL times and don't mind taking a small loss on the short side.

20% Cash

800 UWTI 3x long Oil (WTI) 28k
200 DWTI 3x short Oil (WTI) 14k

800 XIV 800 (2x S&P 500) 22k
2000 TVIX (2x down S&P 500) 5k

The above works in any market and you don't have to wait for a pull back however, S&P is at a point where it will break out above 2120 or break down. I think it breaks out.

Oil, buying more UWTI when WTI hits 46. Just yesterday I bought 100 more DWTI @ 73, will sell @ 68. On the flip side if WTI rallies above 50, UWTI should be close to 40.

J6

PS.. Bought 1000 shares of FCAU in my other account. So cheap.. Cost is 7.02, prob worth 11-15.00 in a year or so/

 

[sma]

uwti is good but oil is better play much lower cost and volume. moves are smoother. If you did ypur strategy on oil you would be that better off unless you were shorting then you would be better off on uwti.

 

[j6]

Never bought Oil or any commodity directly.. I like the leveraged component.

On a day like today, my hedge is looking good. W it, will minimize losses today. And you bet Ill be nibbling at VIV and UWTI..

j

 

[j6]

bought 250 XIV at the open, 24.10
bought 250 UWTI at the open 31.40

Sold 1000 TVIX
Sold 100 DWTI