HOW I USE ETFscreen.com TO TRADE LEVERAGED ETFs Tuesday Traders Jun 15, 2010 Wally Eater weater@aol.com
DISCLAIMERS / Thank You I am not a professional trader Presentation is for information purposes only Not selling or soliciting anything I am not recommending you do what I do Viewers hold me harmless Not an offering per SEC Acts of 1933-34 Thank you Investools / TOS for providing webinar / long distance phone charges and Brian
WHAT I’LL COVER OBJECTIVES / TRADING PROCESS / A FEW RESOURCES HOW I SELECT SPECIFIC LEVERAGED ETFs LIVE SITE: USING www.ETFscreen.com Q&A, REQUEST FOR: ETFscreen.com SUGGESTIONS and URLs, WRAP UP
OBJECTIVES / TRADING PROCESS OBJECTIVE: make >2% / trade (1 day) or 3-5% for 2-6 day swing trade while cutting losses if no win RESOURCE OBJECTIVE: identify URLs that provide Hi/Low rankings on a DAILY basis for symbols to trade: OUTSTANDING RESOURCE: rrtrade.org/2010/02/free-online-etf-tools/ FREE RESOURCE URLs (if you know of others let me know & I’ll update this presentation and email), brokers (TOS, others) plus: ETFscreen, ETFtrends, http://etfdb.com/screener, etffundinvesting
HOW I SELECT SPECIFIC LEVERAGED ETFs How much will be used for high risk trading (x% of assets, increase modestly w/success) Trade in for-profit or non-profit accounts? How much risk will I take? (2:1 or 3:1) How much liquidity do I want? (<50k shares/day, 250k, 500k, >1000k) The Vital Few: ETFs Ranked by Average Daily Value Traded; 2% of ETFs are 92% of activity (URL lists top 72 ETFs (23 LETFs), daily trading >$107MM, 11/12/09) http://seekingalpha.com/article/173003-the-vital-few-etfs-ranked-by-average-daily-value-traded?source=email dated, still a guideline What has large % change: day to day & swing days?
LIVE SITE- ETFscreen.com Go to: http://www.ETFscreen.com/ 1. Screen for volume: ETFscreen >> Performance >> Select: Fund Types (Leverages) >> User Defined (dolVol21) >> Data Timeliness (Current) >> Update Above screen identifies LETFs with high liquidity and low bid/ask prices (dollar volume over the past 21 days, dolVol21) 2. Screen for maximum daily high / low price difference: Above, User Defined (APR21) >> Data Timeliness (Current) >> Update Above screen identifies LETFs with high % high / low avg price difference over the past 21 days (APR21) 3. Specific examples at www.ETFscreen.com
WRAP UP Q&A Do you have suggestions to improve ETFscreen? Forward and I’ll send to CEO/founder to update Do you know of sites that identify the DAILY hi / low price spread over time (ie, NOT the ATR)? Thank you! Wally Eater, weater@aol.com