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Mark Holstius

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Joined: 10/11/2012
Location: Sleepy Hollow, IL

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Subject : RE: 2X and 3X ETF Equity and Margin Risk Control
Posted : 3/28/2016 8:02 PM
Post #35762 - In reply to #35761

I totally agree Steve... to make it easy, Nirvana needs to address the problem. I just want to point out that not adjusting for it could lead to unrealistic backtests now - and this seems to be a possible work around until they do.(?)

The only reason I mentioned that it may be broker specific is for those trading overseas. I can't be sure of their rules.

For the US brokers used by OV at the moment, AFAIK those FINRA rules apply.

BTW - if Nirvana does make changes, I suspect it would be EXTREMELY difficult to cross-check their work & the results on an historical basis in an account...??? (What happens as far as a margin call after the trade is open & the equity goes down during a DD? - it can be more complicated than at first glance)

Mark

[Edited by Mark Holstius on 3/28/2016 8:10 PM]

Deleting message 35762 : RE: 2X and 3X ETF Equity and Margin Risk Control


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