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jmp

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Alias Born 11/25/2008

jmp

Re: None

Wednesday, 12/03/2008 9:47:49 PM

Wednesday, December 03, 2008 9:47:49 PM

Post# of 1185
Blended account using inverse ETF's.

I would like to expand on a question I had a few posts back. I am new to AIM so this may be really stupid but it seems to me that using inverse funds could help performance. For example - I have 30,000. I put 10,000 in QLD and 10,000 in QID, and 10,000 in cash. I would track each separately but use a common cash account. When one is selling the other should be buying so cash flow is fairly flat. The preliminary test with a spreadsheet looks promising.

Does this have potential or is it a stupid NEWBIE idea?

In reality I would not use a 2x fund but I haven't had a chance to research to see if there is an inverse fund that is not 2x.

Any comments are appreciated.

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