Replies to post #41851 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Hi Clive

I have started Aiming various leveraged ETFs

Toofuzzy

[Toofuzzy]

Te leveraged ETFs that I own are

UPRO …..large cap
URTY …..R2000
ERX …… Oil companies
BIB ………Biotech
BDCL …..Business development corporations
CEFL ……Closed end funds

I plan to do more in the future.
You need to have LOTS of cash available for the drops in price.

Toofuzzy

[jaiml]

AIM with Buy/Sell Vealies

AIM over that period bettered each of monthly, quarterly, semi-
annual, annual and band based rebalancing.

Hi Clive, I came to this conclusion as well when I was doing extensive backtesting the last couple of years.

Question: With vealies, do you buy/sell just the right amount to meet the min/max cash requirement? e.g. if cash is at 87% and you get a buy signal for a big buy order, do you still execute it *all* and thus bring the cash level to below 85%?

Same on the sell side: if cash is just below 85% and you get a big SELL order, do you execute it all and hence potentially bring the cash level way above 85%?

Another question: what do you do with the PC upon hitting a buy vealie? do you adjust it, say, by subtracting half the recommended buy amount? If so, a series of buy vealies followed by a rebound can potentially result in early sell signals, possibly even at a price lower than the price last paid. No?