Reader's Comment: Oil Stocks vs. Oil Trading Strategy [View article]
This is..to say the least..a highly overworked and largely untradeable idea. Even a fairly sophisticated investor is going to have to wrestle very hard to squeeze simply the essence of what is going on and commit to a series of short term trades. I have a simpler idea.... Buy the commodity for the shorter.intermediate term..USO will do just fine..sell when it's 1 std dev below the 200 dMA..buy on the opposite..Not sophisticated but profitable and simple..and it keeps trading costs low... Buy a CEF or ETF consisting of oil equities/services that pays a nice distribution and hold for the payouts..you could use the same 200dMA strategy above..it saves a lot of whip sawing..I wouldn't argue with a higher stdDev if one is more conservative....Ratios are great for spotting extremes in trends, but as daily investible indicators a very dangerous and ambiguous tool.
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This is..to say the least..a highly overworked and largely untradeable idea.
Jan 05 10:14 am
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All Comments by Greg Pinelli »Reader's Comment: Oil Stocks vs. Oil Trading Strategy [View article]
Even a fairly sophisticated investor is going to have to wrestle very hard to squeeze simply the essence of what is going on and commit to a series of short term trades. I have a simpler idea....
Buy the commodity for the shorter.intermediate term..USO will do just fine..sell when it's 1 std dev below the 200 dMA..buy on the opposite..Not sophisticated but profitable and simple..and it keeps trading costs low...
Buy a CEF or ETF consisting of oil equities/services that pays a nice distribution and hold for the payouts..you could use the same 200dMA strategy above..it saves a lot of whip sawing..I wouldn't argue with a higher stdDev if one is more conservative....Ratios are great for spotting extremes in trends, but as daily investible indicators a very dangerous and ambiguous tool.