Okay but the phrase "like instruments" may be confusing to some. I wanted to be clear that even instruments appearing to be opposites, or at least on opposite sides such as $VXX and $XIV, $UVXY and $SVXY, $ZIV and $VXZ etc. all declined in 2015.
I have to assume a strategy like this performed well even in 2015, a year in which it has been said that EVERY volatility product declined in price, with UVXY down about 77% that year. I don't think we will see a year in which they all go up!
The dollar, North Korea, the French election, just a bunch of chaff in a wheat field. The biggest takeaway of these articles is the actual investing strategy, which should do quite well regardless of why the markets or the VIX does this or that. Why worry at all? It might seem strange at first to welcome increased volatility while shorting a double leveraged long volatility instrument, but if you'd ideally like to get your "core" back to a certain percentage, it makes perfect sense. Especially when those instruments are guaranteed to go to fractions of a penny long term, just as they already have.
I like your system of shorting $UVXY using layering techniques and routinely taking profits. We just have to keep in mind that it did go up about 1,100% using simulated back-testing late in 2008. If you had relentlessly kept on trying to meet your margin calls, you would be hurt pretty bad. And yeah, the Twitter thing is a lesson to everyone: "Don't tweet strangers unless you are fine with them blocking you."
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VIX-Leveraged ETPs And The 5% Contango Rule
Okay but the phrase "like instruments" may be confusing to some. I wanted to be clear that even instruments appearing to be opposites, or at least on opposite sides such as $VXX and $XIV, $UVXY and $SVXY, $ZIV and $VXZ etc. all declined in 2015.
VIX-Leveraged ETPs And The 5% Contango Rule
I have to assume a strategy like this performed well even in 2015, a year in which it has been said that EVERY volatility product declined in price, with UVXY down about 77% that year. I don't think we will see a year in which they all go up!
Macro-Concerns Dominate The Trading Week As Volatility Takes Center Stage
The dollar, North Korea, the French election, just a bunch of chaff in a wheat field. The biggest takeaway of these articles is the actual investing strategy, which should do quite well regardless of why the markets or the VIX does this or that. Why worry at all? It might seem strange at first to welcome increased volatility while shorting a double leveraged long volatility instrument, but if you'd ideally like to get your "core" back to a certain percentage, it makes perfect sense. Especially when those instruments are guaranteed to go to fractions of a penny long term, just as they already have.
VIX Trading: Even The Pros Get It Wrong
I like your system of shorting $UVXY using layering techniques and routinely taking profits. We just have to keep in mind that it did go up about 1,100% using simulated back-testing late in 2008. If you had relentlessly kept on trying to meet your margin calls, you would be hurt pretty bad. And yeah, the Twitter thing is a lesson to everyone: "Don't tweet strangers unless you are fine with them blocking you."