TLT / TBT Ratio - a bonds long and short oscillator
Updated
On the daily chart- I have plotted the TLT (Long Bond Leveraged) ETF vs the TBT (Short
Inverse) as a ratio. The ratio is running on a cycle between high and low. On the chart for
reference is a Hull Moving Average of 20 days. A more frequency cyling could be achieved
with a paid Tradingview subscription and a charting time frame of 2 or 4 hours.
For the trading idea, when the hull moving average is upgoing and the price is above it, the TLT
can be bought while when the moving average of the ratio is decreasing and price is under it,
the TBT can be bought. At a high pivot point, all TLT is liquidated and a TBT trade is taken .
For a low pivot point, TBT positions are closed and TLT long trades are taken. The best trades
are at the pivot points and when a doulble top or bottom are put onto the chart.
Inverse) as a ratio. The ratio is running on a cycle between high and low. On the chart for
reference is a Hull Moving Average of 20 days. A more frequency cyling could be achieved
with a paid Tradingview subscription and a charting time frame of 2 or 4 hours.
For the trading idea, when the hull moving average is upgoing and the price is above it, the TLT
can be bought while when the moving average of the ratio is decreasing and price is under it,
the TBT can be bought. At a high pivot point, all TLT is liquidated and a TBT trade is taken .
For a low pivot point, TBT positions are closed and TLT long trades are taken. The best trades
are at the pivot points and when a doulble top or bottom are put onto the chart.
Trade active
TLT is approaching support and TBT is approaching resistance; Accordingly, it is time to sell TBT and buy TLT with the proceeds taking out the profits
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