OUR INVESTING STRATEGIES
We manage a number of strategies - all based on volatility assets - The VIX and the traded ETF's based on it.
The results demonstrates very high correlation to the main Indexes -
The S&P 500 and the NASDAQ 100
The meaning -
Trading the indices ETF's according to the strategy signals, generated from the VIX assets, yields results that beat the indices !!!
(In the summary of strategies we also show investment results in the SPY and TQQQ ETF's)
VIX assets respond to two major things:
Panic and nervousness in the markets - These are assets that are used to hedge risks when the uncertainty and nervousness in the market increases. The common situation is that investors in dividend stocks prefer to continue holding them even when the market is in down trend. In order to hedge their risk- they carry out a growing range of PUT options on the S&P500. As a result, the VIX index rises and accordingly the assets that follow the index rise. In the opposite situation where the market is calm and the VIX is falling - the inverse-index assets rise.
In addition, there is also a structured built-in technical mechanism based on the purchase and sale(rolling) of the VIX futures contracts, that are traded daily. This rolling procedure define the logic behind the price changes in the relevant ETFs.
The characteristics of the strategy include the following principles:
A relatively small number of trades
Not DAY TRADING
Very high level of trade-ability
There is no limit to entry and exit on a very large scale
High yields in reasonable time frames
Independence of inside information
Owners and Stakeholders always have an advantage on other investors. We have therefore chosen to focus on something which reflects the pure sentiment of the market where this advantage is not a major one
Independence in financial performance
Too many times it happens that you invest in great stocks with high profitability and fantastic results ... and then their price just crashed! The companies earned fantastic but ... by two cents less than the analysts estimates! And it really does not matter how true and stable the company improved it's business permanence. Therefore our strategy is not influenced by analysts estimates and assessments.
Independence of the market situation - rising or falling
Yes - it is always easier to make a profit in a rising market, but there are very good profit opportunities in a declining market as well. We therefore preferred to focus on something that would give good results in any market situation
With no influence of media and so called professionals
How many words and how many announcements in the media turned out to be wrong and not worth the paper they were written on - even before they went to print? So today less printing in the digital age but the unlimited data floods our minds and - the situation is only getting worse. Everything that is constantly influenced by the media - less interesting for us.
Not something trivial
The entry threshold has been defined as one that is much more beyond the obvious, with consistent results. This will only happen with the right methodology that translates into a strategy that works - with high success rates.
There needs to be something beyond
In the end everything is built on supply and demand - be biased as it may be - at the end supply and demand determine the price. We can not change it and we will accept it as it is. But we have researched and found something beyond that - which is not constantly visible to everyone and whoever is able to understand it and harness it correctly to his strategy - will enjoy an advantage that others do not have.
A good trading strategy in these assets should:
Be able to "contain" the periods of panic, mark the direction correctly and accordingly recommend purchasing or short selling the appropriate assets.
In addition - it needs to understand the technical logic and its effect on the prices of the various ETFs- and no less important - to define on top - the right timing for buying and selling.
The unique strategy respects all the rules and principles above .
Trading in volatile assets - VIX and its derivatives - is very volatile and has a high risk of heavy losses. The information presented here is based on current technical data for the last trading day. What was is not necessarily what will be and should not be seen, in this review and in all that is said on the site, as any recommendation for the purchase and sale of any securities or to perform any action in the capital market
In the graph below - a demonstration of the correlation between the signals of the LONG SVXY strategy and the price behavior of the
S&P500 index (SPY ETF prices)
Strategies structure flow chart
In the table below - details of the subscriptions on the various strategies: