C2 updated SPODD500 with a “Winning Months” percentage of 50%. While technically correct, the first trade was actually a test trade at the last trading day of June which was closed out (shortly after the purchase) at a slight profit - but with commission factored in became a (-$5.00) losing trade on the C2 system.
The strategy itself wasn’t even supposed to have a first trade until July 1, but the C2 parked order system did not purchase the SPXL on 6/26/19 at or near the closing price of $51.35 as requested , so C2 was unable to pick up one of the best trades of July missing out on a 2.4% gain for the first trading day of July.
So, yeah, technically we had a losing month of June ($5.00 in commission) at the last trading day of the month when you factor in commissions - which was me just testing out how to enter a trade and then re-entering the trade as a parked order. But I submit that this stat doesn’t really reflect an accurate statistic for this strategy - hypothetical or real.
In my real accounts the trade worked out perfectly.
Sincerely,
Arbi
PS A great way to trade SPODD500 is with no-load no fee mutual funds. In one of our retirement accounts we were able to place the following trade for June 28 - based on the buy signal. Instead of buying the triple - we had to purchase the double since Schwab One Source does not offer triple funds. Mutual funds trade at NAV at the close of the day.
06/28/2019 Buy RYTNX
RYDEX S & P 500 2X STRATEGY FD CL H
32.089 Shares at $125.34 for a total cost of -$4,021.98
NO FEES NO COMMISSION
07/01/2019 Sell RYTNX
RYDEX S & P 500 2X STRATEGY FD CL H
32.089 Shares at $127.24 for total proceeds of $4,083.00
NO FEES NO COMMISSION
Net profit: $61.02 1.5% GAIN
