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     Fri May 12 2017





UDOW: Technical Analysis: Risk Control

iDateOpenCloseLowHighVolume
millions
Volume
Change
Over
Traded
RSIDay's
Return
Week's
Return
Month's
Return
120170512112.6600112.6900112.3500113.10000.16-51%55%68-0.42%-1.11%6.77%
220170511112.8800113.1700111.2300113.37000.32-5%60%68-0.26%0.09%5.21%
320170510112.9600113.4700112.4800113.94000.34115%63%65-0.17%0.24%4.49%
420170509114.4700113.6600113.0600114.81000.16-9%66%62-0.46%0.52%4.57%
520170508113.8600114.1800113.6000114.31000.17-14%70%610.2%1.36%4.99%
 
Inherent Structural Loss
3x bull ETF UDOW seeks to replicate, net of expenses, three times the daily performance of the underlying index.
If the underlying index goes down 5% the day and goes up 5.26% the next day back to the initial price, UDOW won't go back to the initial price. Instead it will lose 1.6%.
If the underlying index goes up 5% the day and goes down 4.76% the next day back to the initial price, UDOW won't go back to the initial price. Instead it will lose 1.4%.
If the underlying index goes down 10% the day and goes up 11.11% the next day back to the initial price, UDOW won't go back to the initial price. Instead it will lose 6.67%.
If the underlying index goes up 10% the day and goes down 9.09% the next day back to the initial price, UDOW won't go back to the initial price. Instead it will lose 5.45%.

Risk
For long position, enter the trade position at a price below 5 day low moving average $112.4765. The short term down side risk is the suport level at $113.32.
For short position, enter the trade position at a price above 5 day high moving average $114.0408. The short term up side risk is the resistence level at $113.32.

Risk Control
Trading risk can be controlled by either stop limit, or holding period. Besides your own risk tolerance, the volatility of UDOW and the trading strategy dictate what stop limit to use. UDOW price fluctuates 0% within a day, 0% (including gap-up and down) daily, and 0% weekly.

Entering a trade for UDOW at the best time of a day will improve the ROI and reduce the chance of being stopped out.0% of trading days fluctuate 3% or more. 0% of trading days fluctuate 5% or more.

Choose a trading strategy and click Evaluate button to see how different stop limits will impact the return for trading UDOW.

  
 Strategy
 Holding Period
 Profit Target
 Stop Limit
  
 
  

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