2X ETF's to replace C Fund

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ubascuba
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Joined: Fri Sep 08, 2017 11:56 pm

2X ETF's to replace C Fund

Post by ubascuba »

Has anyone tried using a 2X or 3X ETF to replace a C fund? How did the returns look compared with the C fund?
Ubascuba
Strategy:167054

“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” ~ Winston Churchill

wingchaser
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Re: 2X ETF's to replace C Fund

Post by wingchaser »

Great question, Scuba-Enthusiast…

Over the last twelve (12) months the SPX Index (C Fund) is up approx. 50%, whereas (in the same relative time period), TNA - Direxion Daily Small Cap Bull 3X Shares, which just so happens to be one (1) of my favorite daily & swing trades, is UP CLOSE TO 300%.

Could be a nice compliment to one’s ROTH IRA holdings…

Best of Luck (everyone) in all you choose to endeavor!!!
“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t... pays it.” ~ Albert Einstein

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bloobs
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Re: 2X ETF's to replace C Fund

Post by bloobs »

wingchaser wrote: Sun Oct 24, 2021 1:45 pm Great question, Scuba-Enthusiast…

Over the last twelve (12) months the SPX Index (C Fund) is up approx. 50%, whereas (in the same relative time period), TNA - Direxion Daily Small Cap Bull 3X Shares, which just so happens to be one (1) of my favorite daily & swing trades, is UP CLOSE TO 300%.

Could be a nice compliment to one’s ROTH IRA holdings…

Best of Luck (everyone) in all you choose to endeavor!!!
Hmm, interesting. Have you also quantified or estimated the downside risks? I am thinking at its worst, how much would I lose if the S&P dropped 30% below my cost basis?

wingchaser
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Joined: Thu Jan 22, 2009 8:39 am

Re: 2X ETF's to replace C Fund

Post by wingchaser »

bloobster:

Working on an Automated Expert System (based on Velocity Algorithm that includes volume, timing component, along with degree’s of significance). Market exposure will “alternate” between TNA & TZA - Direxion Daily Small Cap Bear 3X Shares. Theoretically, the market is either moving UP or it is moving DOWN,

Or as Yogi Berra would like to add @ this juncture…

When it’s not moving side-ways…

That last was for you, TOMANYIRON!!!

Best of Luck (everyone) in all you choose to endeavor!!!
“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t... pays it.” ~ Albert Einstein

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bloobs
Posts: 1616
Joined: Tue May 21, 2019 8:00 pm

Re: 2X ETF's to replace C Fund

Post by bloobs »

wingchaser wrote: Sun Oct 24, 2021 2:11 pm bloobster:

Working on an Automated Expert System (based on Velocity Algorithm that includes volume, timing component, along with degree’s of significance). Market exposure will “alternate” between TNA & TZA - Direxion Daily Small Cap Bear 3X Shares. Theoretically, the market is either moving UP or it is moving DOWN,
Interesting, very interesting. Are you willing to offer this AES as a software distribution package to poor saps like me?

Anyways, tna/tza scares me because technically it seems either can go to literal zero value in an instant in a super volatile market. Thoughts?

wingchaser
Posts: 795
Joined: Thu Jan 22, 2009 8:39 am

Re: 2X ETF's to replace C Fund

Post by wingchaser »

The key to any investment is the amount of losses you’re willing to endure. In the stock market I’ve promised myself that I will never (ever) take a 10% hit again. With Leveraged ETF(s), a good rule-of-thumb is to implore a Trailing Stop Loss (TSL)

https://www.investopedia.com/terms/t/trailingstop.asp

at 3%…

Best of Luck (everyone) in all you choose to endeavor!!!
“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t... pays it.” ~ Albert Einstein

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ubascuba
Posts: 86
Joined: Fri Sep 08, 2017 11:56 pm

Re: 2X ETF's to replace C Fund

Post by ubascuba »

wingchaser wrote: Sun Oct 24, 2021 9:01 pm The key to any investment is the amount of losses you’re willing to endure. In the stock market I’ve promised myself that I will never (ever) take a 10% hit again. With Leveraged ETF(s), a good rule-of-thumb is to implore a Trailing Stop Loss (TSL)

https://www.investopedia.com/terms/t/trailingstop.asp

at 3%…

Best of Luck (everyone) in all you choose to endeavor!!!
Nice. I had no idea that was a thing. My plan is to use an SP500 2X ETF (Proshares SSO) as part of the strategy I follow. Thanks for the input Wings!
Ubascuba
Strategy:167054

“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” ~ Winston Churchill

TSPBuilder
Posts: 259
Joined: Tue Jun 19, 2012 2:14 pm

Re: 2X ETF's to replace C Fund

Post by TSPBuilder »

ubascuba wrote: Mon Oct 25, 2021 10:13 am
wingchaser wrote: Sun Oct 24, 2021 9:01 pm The key to any investment is the amount of losses you’re willing to endure. In the stock market I’ve promised myself that I will never (ever) take a 10% hit again. With Leveraged ETF(s), a good rule-of-thumb is to implore a Trailing Stop Loss (TSL)

https://www.investopedia.com/terms/t/trailingstop.asp

at 3%…

Best of Luck (everyone) in all you choose to endeavor!!!
Nice. I had no idea that was a thing. My plan is to use an SP500 2X ETF (Proshares SSO) as part of the strategy I follow. Thanks for the input Wings!
ubascuba,

I have been using 2x Funds at ProFunds (sister business to ProShares) since at least 2007 but have only been using ULPIX (2x S&P500 equivalent) since about the beginning of the year because UAPIX (I substitute the 2x Russell 2000 for the S Fund) was outperforming the S&P500 until then. The only downside I see is if the index goes in the opposite direction of your investment by 50% (highly unlikely) it could wipe out your portfolio if you are invested 100%. I don't pay for trades and I am curious if you will? Do you have inverse shares like I have inverse funds? Do you have the ability to do a trailing stop? Do you follow a tspcalc strategy? Good Luck!

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