Short Term Trading Weekend Lounge: 19-21 Oct, page-30

for those interested in the 2 inverse etfs on the ASX, BBOZ and BEAR (i have excluded BBUS as its inverse to the american markets)

i thought i would test some ways to try and trade it profitably.

My logic is this: only buy it when the market is in a down situation and move to cash when it starts going back up.  With my software i have access to 5 market timing indicators, all varying in their timeframes which makes some of them quicker but more prone to false signals and the slower ones are more conservative but less false signals.

I have tried about 30 different combinations of these with varying stops and none of them were able to turn a profit over the last 6 years which is around when these were available on ASX.

Closest i got was hovering around neutral for the 6 years.

I have a suspicion that the lag in these timing indicators are making me miss the bulk of the move in these bear funds, which would ring true with the observation of the big drop last week where the market dropped 3% but BEAR was up 10%.  

Anyone ever made any money off these things?  would love to hear how you did.

cheers.