Grant,

Shorting the longs and the shorts would make an interesting play, but  
I think that is the game the big boys are playing, and they don't want  
to share. :(

BR,
Dennis
On Apr 26, 2009, at 10:45 PM, longarm61 wrote:

> Sure, I'm actually quite familiar with how these things behave long  
> term, Dennis. In fact, that's the reason I'm doing this; to delve  
> deeper into the nuances during different market conditions, the 2x  
> vs. the 3x, etc.  The main reason for the price decay of leveraged  
> ETFs is because of simple math and the compounding factor.  The code  
> I'm looking for can duplicate that part of it, although I'll also  
> have to factor in some depreciation due to expenses and hidden  
> derivative & transaction costs.
>
> Thanks for the warning though.  :-)
>
> Grant
>
>
> --- In [email protected], Dennis Brown <se...@...> wrote:
>>
>> Grant,
>>
>> Be careful with your assumptions about leveraged EFTs.  They are good
>> for day trading, but their long term performance may lose ground
>> compared the underlying.  In other words, if you bought equal values
>> of long and short versions of a leveraged EFT, you may find that over
>> time you lose big.  It is best to just use the actual data that is
>> available since inception on which to base your testing.
>>
>> Best regards,
>> Dennis
>>
>>
>> On Apr 26, 2009, at 8:31 PM, longarm61 wrote:
>>
>>> Hi, I'm guessing that this is a simple thing, but of course, it's
>>> not for me. I'm trying to simulate the performance of leveraged ETFs
>>> going back farther than they go back themselves, hence the  
>>> following:
>>>
>>> I would like to plot a line which moves 2x percentage-wise the gain/
>>> loss of a particular stock PER DAY (bar).  E.g., if I have SPY up,
>>> and SPY moves up 1% on Monday, the line moves up 2%.  If SPY moves
>>> down .5% on Tuesday, the line moves down 1%.  And so on.  It'd be
>>> nice to have an option to switch between PRICE and PERCENTAGE on the
>>> current value (from the first bar showing to the last), but if it's
>>> a choice between one or the other, I'd prefer price.
>>>
>>> Thanks so much for any assistance on this.
>>>
>>> Grant
>>>
>>
>
>
>
>
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