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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Hank Scorpio who wrote (222767)	2/2/2026 3:23:49 PM
From: GROUND ZERO™	1 Recommendation Recommended By Hank Scorpio Read Replies (1) \| Respond to of 222792

You divide the SLV price by the AGQ price and then since the AGQ is a 2X you then divide again by 2... With a 1X and a 3X then you would then divide by 3... This gives you the ratio for a perfectly balanced spread... The number was something like .235, so I rounded it up to .25, this means 1 to a .25 ratio... You're very welcome, this kind of spread between a 1X and 2X or 3X instrument is ideal since it makes money in both directions... Why does it work??? The 1x moves at the same speed going up or down... The 2X and 3X accelerates higher and decelerates lower, so in a rising market you make the profit from the 2X or 3X instrument... If the market goes down then you make the profit from the 1X instrument... It's very simple and yet I've never seen this kind of spread ever mentioned anywhere... It's just about risk free and it makes money no matter what... Calculated the idea ration, put the spread on, and then go on vacation for 6 months... Come back and you have a profit no matter what the market did while you were away... Shorting a 1X also requires that you pay out the dividends when they come due, but the SLV has no dividends, so this makes it much simpler... Glad to be of some help... Also, at any time while in that spread, you could always take some of the profits off the table and rebalance again, this keep the spread working for you if/when you think the market is about to turn around... I've been using this method for many years and have been making great gains, I only rarely take a net long position these days since the spread strategy has just about zero risk and does as well without losing any sleep at night... GZ

To: Hank Scorpio who wrote (222767)	2/2/2026 3:33:00 PM
From: GROUND ZERO™	1 Recommendation Recommended By Hank Scorpio Respond to of 222792

An additional note here on that spread... If you calculate the ratio from the top of both markets just before the move down you'll see the ratio is about 14 to 1 since the AGQ moved up faster than the SLV... This means you would be short lots more SLV for 1 AGQ... When the both moved down quickly that ratio also paid out very nicely... So, the ratio changes every day as the market moved higher and/or lower... Calculated the ratio just when you put on the spread and then just leave it alone and let the market do all the work for you... Once the two markets move out of that general trading vicinity then the profits begin to add up nicely... Calculate the ratio every few days and if you feel good about the profits, then take that profit off the table and keep the spread as a new spread after that rebalance... GZ