ETF based systems

Why do developers still use ETF based systems when they could use equivalent futures contract instead with the peace of mind of having protective stops in place day and night?



Today’s 60% drawdown of the top rated mvp-3 system is a case in point.

On the contrary most futures are not open 24hrs and can still gap at the open like any stock, and they have nowhere near the diverse range of sector specific ETF’s.

Futures also afford much greater leverage but with it comes greater risk, the spectacular collapse of many Forex systems recently is a testament to that, being the most highly leveraged asset class of all.

The popular and liquid e-minis like the ES or NQ trade nearly 24 hours with only a 15 minute break from 3:15 to 3:30 pm.



To eliminate weekend gaps I would suggest getting out at the end of Friday and entering again on Monday.















In case of mvp-3 I would not suggest using the mid-cap futures contract because it is so thinly traded. I would prefer if the developer could adjust his system to the Russell 2000, ES or NQ. I am a subscriber to mvp-3 and used it to trade ES instead and got safely stopped out at a nice profit long ago.