Wednesday, February 07, 2007

QQQQ and QID

In our never ending search for an automated let me sit back and watch and make money method, Dogwood and I are trying a number of approaches to using the Proshares ultra-short funds along with the Q's to see if we can find a market timing system that makes sense. Dogwood is right now studying the effect of TICK on the process and I'm looking at several other methods.

Including buy both and let one fail and one succeed. The best way to do that is to buy one or the other the night before depending on your feel for the market on the next day. If you believe the market is going up the next morning buy the Q's and set a stop close below them. If you believe the market is going down buy QID and set a stop below it. Usually at 3:45 EST you shouldn't have a lot of trouble getting filled because the day traders have all gone home for the day. (Except for a few hard core who play after hours). Then the next morning at the open you buy the other automatically also with a close stop and hope that the whipsaw of the market place doesn't take them both out. It happens. I've tried it a couple of times with success each time but I don't like the suspense.

Yesterday morning provided a great opportunity to try out a pivot point based approach because the Q's opened up and QID opened down. If you want to be prepared for the next day you have to generate the pivot points before the market opens - we've discussed how pivot points are generated so I won't cover that again.

Once you have generated the pivot points for the two stocks as soon as the market opens and you can get a one day chart you should bring it up and annotate it with the pivot point, MPH, MPL, R1, S1 or as much as will fit. Some systems provide this capability built in - mine doesn't but that's OK - I would continue to annotate them by hand as I have been doing all along. I enjoy doing it and it helps me concentrate on the task at hand.

Here is what the two stocks looked like at the end of the day.





You can see how they are an exact mirror image of one another and that they hit the pivot points at the same times. Note how you could have used the pivot point (1) of both stocks to inform your purchase. Then when the QID pulled back away from R3 and the Q's pulled away from S3 you sell QID and buy the Q's.

Thus in one day you make a buck and a half on QID and another 30 cents on the Q's. Dogwood suggests that we use QLD but I don't think it has enough volume yet to make it reasonable. But if you could have got a fill in QLD around 12:15 or so you would have made about a buck on the transaction.

I'll stick with the Q's for the counter trade in this instance until QLD becomes more popular.

A little memory trick so that you won't be buying the wrong ETF - QLD - "Long Double Q's", QID - "Inverse Double Q's".

16 comments:

Anonymous said...

Does your site have a contact page? I'm having a tough time locating it but, I'd like to shoot you an email.
I've got some recommendations for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it expand over time.

Review my web-site - miracle noodle

Anonymous said...

Wonderful website you have here but I was curious
about if you knew of any community forums that cover the same topics talked about here?
I'd really like to be a part of group where I can get opinions from other knowledgeable people that share the same interest. If you have any suggestions, please let me know. Thank you!

Here is my blog post; kohlenhydratarme Ernährung erfahren

Anonymous said...

I write a leave a response whenever I appreciate a post on a site or I have something to contribute to the
discussion. It is triggered by the sincerness displayed
in the article I browsed. And on this article "QQQQ and QID".
I was actually excited enough to post a thought
;-) I do have 2 questions for you if it's allright. Could it be simply me or does it look as if like a few of these remarks appear like they are written by brain dead folks? :-P And, if you are writing at additional online social sites, I would like to follow you. Would you make a list the complete urls of all your communal pages like your Facebook page, twitter feed, or linkedin profile?

Here is my webpage: wordpress themes software

Anonymous said...

Hi there! I know this is kind of off topic but I was wondering which blog platform are you using for this website?
I'm getting fed up of Wordpress because I've had issues with hackers and I'm looking at options for another platform. I would be fantastic if you could point me in the direction of a good platform.

Check out my homepage - brot mit wenig kohlenhydrate

Anonymous said...

Your style is unique compared to other people I've read stuff from. I appreciate you for posting when you have the opportunity, Guess I'll just bookmark this site.


my weblog: Steinzeitdiät Erfahrungen

Anonymous said...

I am regular reader, how are you everybody?
This article posted at this web page is genuinely fastidious.


Here is my weblog; excel für anfänger
Also see my webpage :: kurs joomla

Anonymous said...

This is really interesting, You are a very skilled blogger.
I have joined your rss feed and look forward to seeking more of your
great post. Also, I have shared your website in my social networks!


Also visit my page: glutenfreie rezepte

Anonymous said...

What's up, its nice article about media print, we all understand media is a enormous source of information.

Review my web-site marketing online

Anonymous said...

Greetings, I believe your website could be
having web browser compatibility problems. When I take
a look at your blog in Safari, it looks fine however,
if opening in Internet Explorer, it's got some overlapping issues. I just wanted to give you a quick heads up! Besides that, excellent website!

Look at my web page :: low carb chocolate

Anonymous said...

WOW just what I was looking for. Came here by searching for john holmes

Review my blog der online steuerberater

Anonymous said...

continuously i used to read smaller articles that also
clear their motive, and that is also happening with this paragraph which
I am reading here.

Feel free to visit my webpage :: wordpress lernen

Anonymous said...

Fantastic web site. Plenty of useful info here.
I'm sending it to a few buddies ans also sharing in delicious. And certainly, thanks in your sweat!

Also visit my homepage :: glutenfrei

Anonymous said...

What's up it's me, I am also visiting this web site regularly, this website is actually good
and the people are truly sharing fastidious thoughts.


Also visit my weblog: teff mehl kaufen

Anonymous said...

Just desire to say your article is as amazing.
The clarity in your post is simply nice and i could assume you're an expert on this subject. Well with your permission allow me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please carry on the enjoyable work.

Feel free to surf to my blog; Service Shiatsu Akupressur Massage

Anonymous said...

First off I want to say wonderful blog! I had a quick question which I'd like to ask if you don't mind.

I was curious to know how you center yourself and clear your head
before writing. I've had a tough time clearing my mind in getting my ideas out there. I truly do enjoy writing however it just seems like the first 10 to 15 minutes are wasted simply just trying to figure out how to begin. Any recommendations or tips? Cheers!

My weblog; hq lenkmatte symphony 1.4

Anonymous said...

When some one searches for his required thing, thus he/she wishes to be available that in detail, so that thing is maintained over here.


Feel free to surf to my blog ... lebensmittel ohne kohlenhydrate tabelle