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Long Term S&P 500 Trading With Leverage

MorpheusZ (khaled912)
Mar 15 2017 at 07:34
posts 14
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

Tiffany (TiffanyK)
Mar 16 2017 at 15:45
posts 427
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
Mar 16 2017 at 19:21
posts 48
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
MorpheusZ (khaled912)
Mar 17 2017 at 08:11
posts 14
@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.

Baldo (BaldoN)
Mar 21 2017 at 12:42
posts 522
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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