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Fred,
Why not use or upgrade to a Reg T Margin or even portfolio margin account instead of using a cash account?
Alternative there is an IRA account that ‘clears’ and makes sale proceeds available instantly:
http://ibkb.interactivebrokers.com/article/1380
If these two choices are not viable I would suggest you contact IB support and explain what you would like to do. Maybe they have a suggestion.
VangelisJeff,
PS: Regarding the “fund of funds” strategy – which we internally call a “meta-strategy”; it is a high priority, already working in “alpha” form. We plan to offer a version in the next 2 to 3 months. Thanks for your interest – will keep it high on the list.
Hi Jeff,
Excellent question.
All strategies do take on risk, as they are not market neutral and you are “buying beta”. The good news is, they have a lower level of risk vs simply buying the indexes, for the reasons you have read about, including varying degrees of shifts towards low/inverse correlated assets, like treasuries.
Frank’s statement is a reflection of his valuable judgment and experience that later points in the coming months might provide stronger relative strategy returns, but does not include the optional crystal ball.
Historical results are quite real, starting from June 2013 when the strategy went live, however, performances going forward will shift with the market conditions. We are confident it will add value over time, but one should not expect a straight line of growth.
One can further reduce risk by further spreading around assets between strategies, and, managing how much assets are at risk. Of course, you might miss an opportunity. No free investment return lunch here, but we do strive to provide better quality lunches with ways to access at lower cost.
I hope this helps.
Ruth,
Generally you can take long positions in leveraged ETFs in US IRAs, but you can’t short nor use margin in most IRA accounts.
