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3X Leverage ETF Arbitrage -NUGT/-DUST

If some traders/investors had experience with this strategy (short -NUGT/-DUST) with real money or with other 3X Leverage ETFs, I will appreciate your feedback, thanks! Uri

4 responses

I've done similar strategies. Try looking at shorter timeframes and trying to measure relative value.

My experience has been that it doesn't work very well with extremely liquid and efficiently priced ETFs, like SPY/QQQ/DIA and their related leveraged pairs. This does mean that the strategy will only work with limited capital, so bear that in mind.

Thanks Harry!

how was your experience/results with -NUGT/-DUST?

which other iliquid ETFs did you trade?

I had this same idea at some point. The tail risk on a strategy like this enormous.

Test it on natural gas. It blows up right where this guy got blown up: https://www.youtube.com/watch?v=VNYNMM0hXXY