A real life CAPS portfolio
A lot of people on CAPS red thumb broken etf's. A lot of people say its cheating, a lot don't care, but regardless it works.
In real life, shorting 2x SPY etf's is not always the best idea. They don't decay very fast.
3x works pretty well at shorting, as do the oil and gas ETFs, and especially the vix ETFs. Short UNG on a pop or VXX on a pop. Shorting bear ETFs seems to also work better than shorting bull ETFs.
You can't short both the bull and bear and hope the decay gives you a positive EV. If the market goes nuts, you will make like 60% on one trade and lose 300% on the other and your broker will call you and say "you owe us your life savings and your soul" and then it's all over.
Has anybody tried having a portfolio of only short etf and cash? Cash for if your trade goes wrong by 50% in a week you just double down. Short nothing but vxx, ung, uco, possibly faz on a pop and watch it drop?
TD does not charge hard to borrow fees and usually has these available to short. And it can't really be a crowded trade since it is a ETF not a CEF.
Any thoughts on if it would work?