Strategies for Trading Leveraged and Inverse ETFs

[GetRichOrDieTrying]

Anyone trading leveraged or inverse etfs? NUGT, DUST, TQQQ, SQQQ, LABU, LABD, UCO, SCO. I've been trying to trade them. Any ideas for developing an edge for trading these ETFs or any indicators or custom thinkscript ideas?

 

[markos]

It really depends on your time frame and what product you want to work with.
In a trending market, my suggestion, not recommendation, is RSI Laguerre with Fractal Energy or TMO, Time Momentum Oscillator.
Leverage can wipe an account out in a hurry, please use with caution. Use the Search Bar above to find either one of these.
btw, how long have you been trading/investing?

 

[GetRichOrDieTrying]

It really depends on your time frame and what product you want to work with.
In a trending market, my suggestion, not recommendation, is RSI Laguerre with Fractal Energy or TMO, Time Momentum Oscillator.
Leverage can wipe an account out in a hurry, please use with caution. Use the Search Bar above to find either one of these.
btw, how long have you been trading/investing?

Thanks Markos. I've been trading for 1 year with varying degrees of success. Do you have any recommendations on entry and exit signals for the indicators you mentioned?

 

[GetRichOrDieTrying]

Thanks Markos. I've been trading for 1 year with varying degrees of success. Do you have any recommendations on entry and exit signals for the indicators you mentioned?

As far as timeframes, I should also mention that I use the 1H for longterm trend, 15M for mediumterm trend and I trade the 5M

 

[markos]

Thanks Markos. I've been trading for 1 year with varying degrees of success. Do you have any recommendations on entry and exit signals for the indicators you mentioned?

I don't day trade so I shouldn't be the last person you ask, however, there is plenty information on this site.

I do understand that a number of day traders use the ORB along with the RSI Laguerre + Supertrend. This site has it's share of Day Traders.

I cannot give you a clue regarding trading 2x & 3x products. They re-set every night so each day is truly a new day as far as they are concerned.
Be sure you've done your research on that. 4 to 6 yrs ago, both a Bull & a Bear 3x fund in the same product both lost over 70%. You'd have to look that up.

 

[Eskay]

I am a newbie in think script and joined this group in the last couple of weeks. Seeking your assistance in developing think script for the following concept:

SPXL/SPXS Trading strategy based on SPX value relative to daily 3 ema and 8ema

Define Zone 1 as Lower zone when price<8 ema<3 ema

Define Zone 2 as Middle zone when 8 ema<price<3 ema and

Define Zone 3 as Upper zone when 8 ema<3 ema<price.

SPXL BUY Strategy

• Do not trade when (3 ema – 8 ema) is narrow; trying to avoid headfake

• Buy SPXL when price crosses above 8 ema by a certain % (to be determined); the script should plot a green arrow when this condition is met in intraday chart

Immediately upon fill,

enter a stop loss order ($ or % to be determined) or

• enter a sell order based on Fibonacci retracement, cup and handle projection or overhead resistance
• Hold SPXL when price crosses above 3 ema.
• Sell SPXL when price reaches a certain % above 3 ema (to be determined); the script should plot a red arrow when this condition is met in intraday chart
• Buy SPXS when price crosses below 3 ema by a certain % (to be determined); the script should plot a red arrow when this condition is met in intraday chart; again, we are trying to avoid headfakes
• Immediately upon fill,
• enter a stop loss order ($ or % to be determined) or
• enter a sell order based on Fibonacci retracement, reverse cup and handle projection or support below
• Hold SPXS when price crosses below 8 ema.
• Sell SPXS when price reaches a certain % below 3 ema (to be determined); the script should plot a green arrow when this condition is met in intraday chart

Do you think you can write a single script that may work out for both day and swing trading?

Or, perhaps, two different scripts weekly/daily ema for swing and day/x min for day trading?

Let us discuss and develop………..

Example below:

Buy SPXS Feb 24 $ 12.98, Sell Mar 23 $ 27.46; gain 112%

Buy SPXL Apr 6 $25.81, Hold Apr 17 $ 34.76; 35% gain!