I’ve just decided that buying equal amounts of both LABU and LABD, setting trailing stop losses and sell limit alerts is a more feasible strategy to insulate from trading risk.
Yes, you’ll lose a little bit if the trailing stop loss of the long or short position executes and the opposing investment “pumps and dumps”, but eventually as prices stabilize and oscillate +/- 10%, you can collect the profits by selling long and short positions on an alternating, oscillating pattern.
Effectively, we’re talking momentum trading by buying in to both sides, and riding the waves.