Trading the FAS/FAZ ETF at the Open
Posted: Wed Aug 26, 2009 12:20 am
Basically I was doing research into trading the 3X Financial Direxion ETF
NYSE:FAS (Bull)
NYSE:FAZ (Bear)
This is a good ETF to make some quick money because of the 3X leverage.
Anyways I got some tick data (1 minute) data from 4/20 to 8/18.
What I am trying to do is find a reliable and successful method to get quick revenue with this setup.
So to start what I did was plot all the results into EXCEL and long/short a trade if and only if the OPEN PRICE at 9:30 (EST) and CLOSE PRICE at 9:34 (EST) differed by at least 1%.
If it was greater than or equal to 1% then a trade was initiated at 9:35 (EST) at the opening price.
Here are the results
4.20 - Short
4.21 - Long
4.22 - Long
4.23 - Short
4.27 - Long
4.28 - Long *
4.29 - Long *
5.1 - Short FAIL
5.2 - Long *
5.5 - Long
5.6 - Long
5.7 - Short *
5.8 - Long * FAIL
5.11 - Long FAIL
5.12 - Short *
5.13 - Short
5.14 - Long FAIL
5.15 - Long FAIL
5.19 - Short
5.20 - Short *
5.21 - Long *
5.26 - Long
5.27 - Short
5.28 - Long * FAIL
5.29 - Short
6.1 - Short FAIL
6.2 - Short FAIL
6.18 - Long
6.23 - Long
6.24 - Short FAIL
7.13 - Short FAIL
7.14 - Short
7.15 - Long
7.20 - Long FAIL
7.22 - Long
7.24 - Long FAIL
7.30 - Long FAIL
8.10 - Short FAIL
8.12 - Long
8.14 - Short
The * means a difference less than 1% was found and the Open price at 8:35 was compared with 8:39 Closing price instead.
I didn't write down the profit but it was usually at least between $.75-1.50 per share.
Many dates are missing which indicates that there was a difference of less than 1% those days "Doji"
I am trying to perfect this however additional help would be appreciated. If you want I can send you the 1 min tick data and you can try to analyse the data yourself.
NYSE:FAS (Bull)
NYSE:FAZ (Bear)
This is a good ETF to make some quick money because of the 3X leverage.
Anyways I got some tick data (1 minute) data from 4/20 to 8/18.
What I am trying to do is find a reliable and successful method to get quick revenue with this setup.
So to start what I did was plot all the results into EXCEL and long/short a trade if and only if the OPEN PRICE at 9:30 (EST) and CLOSE PRICE at 9:34 (EST) differed by at least 1%.
If it was greater than or equal to 1% then a trade was initiated at 9:35 (EST) at the opening price.
Here are the results
4.20 - Short
4.21 - Long
4.22 - Long
4.23 - Short
4.27 - Long
4.28 - Long *
4.29 - Long *
5.1 - Short FAIL
5.2 - Long *
5.5 - Long
5.6 - Long
5.7 - Short *
5.8 - Long * FAIL
5.11 - Long FAIL
5.12 - Short *
5.13 - Short
5.14 - Long FAIL
5.15 - Long FAIL
5.19 - Short
5.20 - Short *
5.21 - Long *
5.26 - Long
5.27 - Short
5.28 - Long * FAIL
5.29 - Short
6.1 - Short FAIL
6.2 - Short FAIL
6.18 - Long
6.23 - Long
6.24 - Short FAIL
7.13 - Short FAIL
7.14 - Short
7.15 - Long
7.20 - Long FAIL
7.22 - Long
7.24 - Long FAIL
7.30 - Long FAIL
8.10 - Short FAIL
8.12 - Long
8.14 - Short
The * means a difference less than 1% was found and the Open price at 8:35 was compared with 8:39 Closing price instead.
I didn't write down the profit but it was usually at least between $.75-1.50 per share.
Many dates are missing which indicates that there was a difference of less than 1% those days "Doji"
I am trying to perfect this however additional help would be appreciated. If you want I can send you the 1 min tick data and you can try to analyse the data yourself.