imported post
By the way, the timing service that I am in has us in all these inverse funds (if you choose the most aggressive strategy) If you don't want to be aggressive, you stay on the sidelines. It has been the same since 4/30/04 (short or out, that is) Personally, there has been about a 10% swing that I really did not take advantage of. In other words, in the middle of May, I was down about 11-13%, short with margin. Now, I am up about 4-5%, short with margin. Fortunately, I stayed in the whole time. But I am wondering if there was any way to take advantage of those short spurts either way without driving myself crazy.
How do you feel about a strategy of getting in a fund when it is above it's 10 day average and out (or inverse) when it is below? I back tested this for the first 7 months of the year. I'm talking about personal funds here, where you can make the call at 2:59 pm and get that days price. Backtesting the Russell 2000, long only with this was about 20%, the Nasdaq 100 was about the same. If you got into the inverse it would even be better. I would simplfy it and only choose one, or maybe just two of the indexes to do this. Also, there would be no fees for this as long as I stayed within the Profunds, Rydex, or Potomac groups. It would be a little harder with the TSP stuff since the day lag, and I can't ever seem to look at the price before noon. I think I'm going to try this 10 day strategy, and I have dumped the timing service for now ($29.95/month)
Right now, all TSP stock funds are below the 10 day average, as well as the Russell 2000, Nasdaq 100, and S/P 500. That is why I'm shorting the indexes (with Margin, of course) I'm a little nervous about being in C and S right now. Later,
Joel