Friday, August 9, 2013

A new tool for BOT purposes

Today I did something really nice, I built a tool that imports raw data from yahoo and then transforms it into an inverted leveraged dataset (depending on setting) and finally exports it into a csv file. The purpose is to be able to see chart action similar to that of inverse leverged ETFs but for regular stocks. The csv file can be imported in another tool that can chart it. Right now I'm using Excel (that took  a @!!!##!"!!!$! long time to set up right). Anyway here is an example:

No great opportunites visible here.

But sen from this perspective, inverted and with 3X daily leverage this chart looks like fun! Plenty of tradable peaks and a resistance line that gets clearly broken. The charts are not properly aligned but the benefit of this tool to see clearer what going on is showing. Another benefit is that trading by this tool would mean going long stocks. BOT trading is generally done by shorting. It's clear that stocks are going down in different patterns compared to how they go up. The theory of volatile periods in inverted leveraged ETFs is really not uique to them, it's how all stocks behave at bottoms.

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