Long Term S&P 500 Trading With Leverage

Mar 15, 2017 at 07:34
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4 Replies
Miembro desde Jan 21, 2017   posts 14
Mar 15, 2017 at 07:34
Any thoughts or feedback on a long term strategy that only opens 'buy' s&p 500 orders and tries to keep a fixed amount of lots per equity open at any given moment?

For example:
equity: $1000, open lots: 10
(price goes up)
equity $1100, open lots: 11
(price goes down)
equity $1000, open lots: 10
(price goes down)
equity $900, open lots: 9
etc...
YOLO
Miembro desde Feb 12, 2016   posts 427
Mar 16, 2017 at 15:45
Have you tried it? When will be a good time to stop – what should be the END profit and loss levels? Just very curious…
Accept the loss as experience
Miembro desde Feb 13, 2013   posts 48
Mar 16, 2017 at 19:21
Buy positions should pay dividends from earnings. That's a good strategy to play but not now when S&P are breaking new highs. On top of that there are fundamental surprises and uncertainties like Trump and Brexit. And please do a favour to yourself, don't grid with leverage.
What goes up, must go down
Miembro desde Jan 21, 2017   posts 14
Mar 17, 2017 at 08:11
@TiffanyK Did not backtest it yet, but simulated it on some arbitrary price movements. I'd stop whenever the money is needed (likely in years, it's a long term strategy).
@argreen Thanks for the advice about when to enter the market. I don't quite see how this is a grid strategy, though. I'm not trying to be agnostic to the price movement direction. This strategy will lose money if s&p goes down.
YOLO
Miembro desde Feb 12, 2016   posts 522
Mar 21, 2017 at 12:42
Hello,
It seems on very first look that you do not have any entry set up, neither target and your idea just considering the long side. As per my opinion, looks as a guessing for direction with some element of position sizing.

Just a question - most likely the idea behind is to make money either from dividends and from financing (rollover). something similar could be done with some FX pairs as USD/TRY or EUR/TRY from the short side - just as an idea :).
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