I like to trade indexes by using ETFs.
For instance, I am comfortable trading SPY for SPX index.
I am looking to diversify and back test on these Indexes and trade their ETFs if successful:
^MERV Merval (Argentina) use ETF ARGT small volume
^JKSE IDX Composite (Indonesia Stock Exchange) use ETF EIDO
ARGT has such a small volume, can I trust to get in because I want to trade on Merval?
Also, ^JKSE ( seems to have larger volume for Indonesia).
My major concern is being able to get in and out of these ETFs daily on a buy or sell signal and not have to worry about not able to get out.
Also, I am guessing that there is no area on this forum to discuss these issue in-depth, or am I wrong. If I am wrong, can you recommend a forum site for honest trading ideas?
Should I go back to the old WealthLab site to ask these type of questions?
Also, these specific ETFs have small history compared to their Indexes, if I backtest on the indexes, can I reliably use this testing results to think that these results will be the same on their ETFs.
Thank you,
Larry
For instance, I am comfortable trading SPY for SPX index.
I am looking to diversify and back test on these Indexes and trade their ETFs if successful:
^MERV Merval (Argentina) use ETF ARGT small volume
^JKSE IDX Composite (Indonesia Stock Exchange) use ETF EIDO
ARGT has such a small volume, can I trust to get in because I want to trade on Merval?
Also, ^JKSE ( seems to have larger volume for Indonesia).
My major concern is being able to get in and out of these ETFs daily on a buy or sell signal and not have to worry about not able to get out.
Also, I am guessing that there is no area on this forum to discuss these issue in-depth, or am I wrong. If I am wrong, can you recommend a forum site for honest trading ideas?
Should I go back to the old WealthLab site to ask these type of questions?
Also, these specific ETFs have small history compared to their Indexes, if I backtest on the indexes, can I reliably use this testing results to think that these results will be the same on their ETFs.
Thank you,
Larry
Rename
I don’t believe there is much going on in the legacy wl6 site’s forum, and of course you can bring topics like that up here.
Hi Imseldin,
Using a 100 day average volume, EIDO has about 550k and ARGT has around 5k. Depending on your size, I don't think you would have issues entering/exiting EIDO. ARGT on the other hand, you're probably going to have considerable slippage due to the spreads. That's my 2 cents.
Using a 100 day average volume, EIDO has about 550k and ARGT has around 5k. Depending on your size, I don't think you would have issues entering/exiting EIDO. ARGT on the other hand, you're probably going to have considerable slippage due to the spreads. That's my 2 cents.
Anis,
I have a concept question.
Let's say the Index is at 1000 and the ETF is at 100. So if I placed a large trade on the ETF the asset will increase significantly because of slippage for the buy. When does the ETF go back to the index price?
Thank you,
Larry
I have a concept question.
Let's say the Index is at 1000 and the ETF is at 100. So if I placed a large trade on the ETF the asset will increase significantly because of slippage for the buy. When does the ETF go back to the index price?
Thank you,
Larry
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