| Index | Recent Threads | Who's Online | User List | Search |
|
|
 |
Portfolio123 » List all forums » Forum: Simulations and Portfolios » Thread: Thoughts on hedging... |
|
Total posts in this thread: 3 |
[Request a Feature]
[Post new Thread] [Add To My Favorites] [Watch this Thread] |
| Author |
|
|
synhawk
Advanced Member
|
Hi All, P123 is a great resource, and looks to have a good user community. So far it seems most of you have been focusing on bull market ports. My question is: has anyone thought about hedging their ports? Shorting DIA or SPY is one simple way to do it, or jump into the futures market on the ES or YM if you want to keep your cash flow free without using options.... There is also of course the short port where you do a long/short combo.... Finding a rank/port that has a significant negative correlation to the benchmarks is a tough one for me so far. Anyway thoughts/comments are welcome!  |
||
|
|
hmorris48
Advanced Member UNITED STATES Joined: Feb 24, 2007 Posts: 76 Status: Offline |
You might want to have a look at: http://www.portfolio123.com/mvnforum/viewthread?thread=981&offset=0 a recent thread on hedging. ---------------------------------------- The holy grail of trading system design is a perfectly smooth equity curve. Beyond Technical Analysis |
||
|
|
synhawk
Advanced Member
|
Thanks hmorris. It does seem that shorting IWM might be the best option for a lot of my ports, since it seems to have the best correlation. I'm trying to avoid using options due to the extra costs and hassle involved compared to shorting the etf. I do wonder about shorting the ER futures instead of IWM but I think you get less granularity there particularly for smaller accounts. The advantage is that it ties up less of your cash since it is significantly leveraged. I tend to want a 60/40 orientation in terms of % in port / % short hedge. |
||
|
| [Show Thread Printable Version] [Post new Thread] |
