SOXL / SOXS , this ratio analysis shows when to trade each

SOXL is the triple leveraged semi-conductor ETF while SOXS is its inverse. While SOXL

is primarily up trending in its intermediate and full-time history, it does from time to time

have a correction mainly when the technology sector gets challenged. I have found that

plotting the ratio of the share values is a very accurate way of pinpointing those corrections

and temporarily buy some SOXS to offset the downward price action and nullifying any

loss. This is more or less insurance in case the overall position must be closed for one reason

or another or transient hedging. As can be seen, these corrections last 1-5 days . This strategy

is effective risk management as during the correction the SOXS gains some of what SOXL

loses especially if the share dollars are equally balanced. Ever better is the same thing on

a 2-3 hour time frame albeit it with more hedging trades.

I have found that this strategy works on a variety of inverse ETF pairs. Most of them however do

not have one side going up more or less continuously and instead oscillate rather than simple

and shallow corrections like this pair. Please give a like if you this this could be helpful to your

trading.