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Everything posted by blackball
Don't use ES for trading, use it for holding long term Don't have to pay tax on distributions and not as easy to get margin calls as a leveraged SPY. Can also get the leverage at the "risk free rate" and not whatever your brokerage happens to charge you.
Hi: I have heard that futures trading is a zero sum game but is this true? In the long run (I mean at least 10+ yrs) stock indices have a tendency to go up so if one were to supposedly open long futures positions and roll them over every 3 months (or longer) could you not capture the long term gains in the stock market (minus the dividends)? I was thinking of a basket of diversified e-mini futures to start (S&P500, Russell2000, Emerging Markets, Commodities, etc). Taking it one step further might possibly be using a simple trading system like double crossovers on moving averages (i.e. 50 and 200 day) as buy/sell indicators. I've done some prelim back testing on this and it seems to work (yes we all love how backtesting results always turn out great ) I'm not talking about hitting a homerun so it would involve using "only" 3x leverage. Thoughts? Thx Blackball