Part of any good trading strategy includes risk control. I have gone back and forth on this and still not sure best use of leverage. CEFL is highly leveraged and carries with it its own proprietor risk because of how UBS achieves its 2x leverage goals. The YYY has risk as well. The closed end funds that make up the index take on risk as well to achieve the 8% yield. Risk is just part of this game.
I qualified on 8/28/17 for $.13 share dividend with YYY. After this dividend qualification I rolled out funds (few days later) into CEFL to capture its ex-dividend day on 9/12/17. Soon once I captured that dividend (again few days later) once price recovered from ex-dividend date drop I sold half my CEFL position to downsize my leverage risk and rolled those funds back into YYY to capture this upcoming ex-dividend on 28th of September.
It is important to understand my long term goal is to create a growing stream of income. I am using leverage to do this but I want to always beware that leverage cuts both ways. I would only roll funds into CEFL like I did when my trading strategy that I call The Money Flow is giving me a buy signal. That puts the wind at my back so to speak. Rising tides lift all boats.
As of this morning I am full long YYY and CEFL
Fully long BIZD and BDCL.
Current Expected Yearly Income: $7,927 or $660 a month. Long ways from my $2000 goal but getting closer each month.