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How To Trade Direxion Leveraged ETFs? (LABU, SPXL, SPXS, TECL, TECS, SOXL, SOXS)

Direxion Leveraged ETFs

Direxion provides both Leveraged & Inverse ETFs (such as LABU, SPXL, SPXS, TECL, TECS, SOXL, SOXS) across multiple market sectors, including: Commodities, Emerging Markets, Finance, Healthcare, Technology and many more. Leveraged products include 1X, 2X, 3X which relates to the target daily investment results before fees and expenses.


How To Trade Leveraged ETFs


Algorithmic trading across some of the best ETFs involve identifying patterns that deliver consistent returns based on multiple performance metrics. Trading across sectors allows investors to manage risk by reducing exposure to any single security. However, leverage products do carry a higher range of risk during times of volatility. It's important to consider the fees associated to holding leveraged products when calculating returns.


ETF Performance


To generate consistent performance, we utilize backtesting across Profit Factor (Gross Wins divided by Gross Losses) and Profitability (Percentage of Winning Trades relative to Total Trades executed). Most technical traders are less concerned on the overall fundamentals relating to the security. Volatility is a major consideration when reviewing performance, specifically as it relates volume and potential indications of institutional support in either direction. Though ETFs cannot be directly manipulated since they comprise of a basket of securities, our institutional markers can pin-point general inflows and outflows of funds across the market as a whole.


The most important for a day trader is to follow a strategy consistently. In our videos series, we cover various day trading strategies, focus on improving your overall performance. Our algorithm is designed to simplify the processing of identifying patterns, allowing traders to identify opportunities to buy and short various securities. UltraAlgo delivers clear buy and short signals on any security listed across all major exchanges (NYSE, NASDAQ, CBOE, TSX, LSE), including forex and crypto. A free trial is available at no risk.

Join our Community with over 17,000 active traders. Our team posts thousands of trading ideas daily covering both interday and intraday trading opportunities.

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