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Playing & Trading Strategy

Can we use HPYF2 StarBonds as an example? The MSO was trading at about 130-140....the BOOM (or is it a BINGO?) reality hits, it opens

Posted by: Buy StarBondFund (Buy EURO) (a.k.a mrbinns) on Dec 02, 20:16 in response to jtempkin's post If anyone can purchase the bonds and everyone knowes the...

shall we say "weakly" and is currently less than half that amount.  Well 70 points is 14 less of an adjustment, making some longs bercome shorts. 

Another problem is that (especially ahem, larger ports) will "Set it and forget it" and there are many changes along the way.

Also, there are diminishing returns.  A bond that may have a 50 point change will be moving constatly toward the final adjust.  If you cannot afford to get in soon enough, your profit will be diminishing.  That is why BONDS concentrates on dROI trying to get the best bang for the buck.  The hard part is that at 90M in bond investments, I am looking at dROI of .43 as a "good " investment.

It is an interesting part of HSX, but remember MSO's are the heart of the game.

 





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