RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:**Scorecard**depends on how aggregsive and frequent one wants to be trading this. I personally dont mind it being 1X and will go back in if these other 2 conditions are met as well.
Condition 1:
The curve has to be flatter and not big contango like now, otherwise just keep losing monthly on the roll and erode any profit when crude rallies
Condition 2:
I accept there will be a small prem to NAV potentially for the "convenience factor". But it should be like 10 cents on a $5 NAV etc, not $2 on a $0.37 NAV like 2 days ago.
Another thing that most dont think deep enough is buying a etf that track daily % change has the same effect as closing out your position each day and start afresh next morning. It is different from an actual stock when its day over day absolute dollar change that matters in reality.
Say roughly 240 trading day a year, it oscillates between up 10% vs down 10% each day, a $10 starting price will become ~$3, and that does not even include rolling cost and management fee.
If it goes up 10%, follow by 9% each day for the next year, ur $10 becomes $11ish before the menioned fee. Even tho cumulatively you would be up 240%....