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Strategies - leveraged commodities funds

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1 Strategies - leveraged commodities funds on Sun Jun 14, 2015 10:00 am

Just a topic for all to discuss more generalized leveraged commodities fund strategies.  I'll start with a buying strategy:


1. Plan in advance how much you are willing to invest in a fund.
2. Determine the inflation adjusted historic (or 5 year) low spot price of the underlying commodity.
3.  Divide up item 1 into the maximum number of positions you plan to invest in.
4.  Enter 1st position on a dip.  The bigger the dip, the better.
5.  Determine additional positions by subtracting projected fund price at the historic low (account for some decay fudge factor) from the 1st position.  Divide this difference by the number of positions from item number 3.

Note:  This is a short term strategy only (maximum hold time = 1 month). If it does not pan out in a month, take your losses and wait.

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