Horizons ETFs Management (Canada) Inc - BetaPro S&P 500 VIX Short-Term Futures Daily Inverse ETF Class A BTTPF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Titanic Economics

[Contra_Man]

hi contra, what do you mean re: units, when you posted "Buying three (3) units of HOU-T after selling out all of our HOD-T." i am not familiar with this expression. thanks, hope all is well. AT.

Excellent question AT.  Units are logarithmic trading patterns we use to either SELL or BUY falling knifes typically.  Each unit is defined as exactly one board lot, or 100 shares, if priced on lot rules as stated by listed exchanges the security trades on as utilized in determining lot sizes.   Small investors could use 1/10th positions...larger could use x000 if the float allows for such level of trading.  Each additional SELL or BUY post is simply one additional board lot or 100 shares.   Thus, our progressive (or regressive if we are selling) logarithm is defined as the number of shares held +100 as compared to the initial position in the target security.    Units are therefore defined by the following trading block calculation:

NEW BUYS/NEW SELLS                                 

1st unit     100 shares                                                 100
2nd unit    100+100=200 shares                                  300
3rd unit      200+100=300 shares                                 600
4th unit      300+100=400 shares                                1000
5th unit      400+100=500 shares                                1500
6th unit       500+100=600 shares                                2100
7th unit       600+100=700 shares                                2800
8th unit       700+100=800 shares                                3600
9th unit       800+100=900 shares                                4500
10th unit     900+100=1000 shares                               9000
11th unit     etc.

If we added 2 units (from a fictional present holding of say, five units held in inventory, we then need to BUY 1,300 shares which is comprised of 6th and 7th units (or 600 shares + 700 shares = 1,300 shares need be purchased).  A tranch is 15/15 positions, with allowed over-weight (o/w) of double exposure being 30/15 positions held in inventory.  -11.52 trailing on close stop loss applies to each position as purchased.