Our signal to buy corn was "right on the money." Unfortunately, corn "gapped-up," so while we still made money, was didn't make as much as we would have hoped. We are still long Gold and the British Pound. In addition, we exited Silver, Market on Open. We had mixed results: the future made a whopping $2,215, while the ETF lost 1.4%.
We have discussed the reasons many times before, but today we will elaborate. Usually, over time, we expect this not to be the case. However, here's why it sometimes happens: The mathematical algorithms have been developed using many years of futures data. The algorithms have also been optimized using a minimal number of independent variables. The majority of the futures markets we trade open at 3:00 pm Pacific Time, and trade until 2:00 pm the next day, for a total of 23 hours, 5 days per week. The ETFs that track the futures begin trading at 6:30 am Pacific Time, and trade until 1:00 pm Pacific Time, for a total of 7.5 hours, 5 days per week. For short-duration trades, the difference in returns can be substantial. The ETFs can return more or less than the futures. However, for long-duration trades, it becomes trivial, that is, the returns of the ETFs and futures converge. If you wish to be notified of new posts, let me know at bassanalytics@live.com. I will send you an email every time there is a new post. Follow us on Twitter at www.twitter.com/bassanalytics.Any views expressed herein are provided for informational purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest. Past performance is not indicative of future results. Investors should discuss any investment with their personal investment counsel. The quotes and symbols used in the BLOG are believed to be reliable, but no guarantees are made with regard to the accuracy. We may have positions in one or more of the ETFs or futures of the computer-generated signals.
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