MILESCFA

Answering Readers' Questions: Shorting the 5-10-20 Trading Strategy

"I only trade leveraged funds from ProFunds, Rydex, and Direxion, where there are no transactions costs or slippage"...

So you BUY at the bid and SELL at the ask? You must be a market maker. I'm not.

If you simply put out a limit order, say a buy at the current bid (or vice versa), this is still NOT frictionless. It's simply the prudent use of limit orders. The ONLY WAY THERE IS NO SLIPPAGE IS IF THE BID-ASK SPREAD IS ALWAYS ZERO. It's not!