There are quite a few volatility strategies on Collective2.
I prefer those with TOS-certificate and good backtest results.
Of course we all know that a backtest is no guarantee for future profits.
But it shows that the system has been tested by the strategy creator and it did work in the past.
An additional TOS-certificate proves that the strategy creator really believes in its own strategy.
Of course diversifing your account with different volatility traders will help to smooth your account performance.
And I also sympathize with marekj’s post
But who knows when the next market correction will happen?
So until then… here are my favourite volatility strategies.
I do like David Juday’s “Smart Volatility Long” strategy very much.
Trading only long and using options to hedge, it’s one of the “safest” volatility strategies on C2.
Also recomendable is the riskier “Smart Volatility Short” strategy, which uses options for security as well.
Both strategies are TOS. Risk/Reward is amazing. In the first year they were 100% & 180% in profit.
David is very helpful and responsive and even provided a webinar for subscribers.
I also like C.J.'s “Fast Nickels” strategy.
It trades only long and uses 75% allocation, therefore it’s also one of the “safest” volatility strategies on C2.
More risky is his “XIV Timer” stregy wich goes 100% long or short on XIV & SVXY.
“XIV Timer” is TOS, “Fast Nickels” is not, not sure why.
But both strategies show very promising long-term backtests.
So far the performance was 90% & 100% since Sept.2016, despite the negative performance in April 2017.
C.J. is very communicative and you will get frequent updates & good explanations on the trades and the system.
“QuanTimer VIX” is also interesting. So far it has been solid with a 82.6% annual return & 18% DD, but no TOS.
If you want more performance you can follow “Quantimer VIX-L”, which is leveraged and trading short.
With an allocation of 165% “VIX-L” it’s more risky, so be sure to adapt/reduce the C2-scaling to your portfolio.
They also have a nice webpage > www.quantimer.net with lots of backtests.
Ryan of Quantimer.net is very helpful and responsive to subscribers.
“Volatility Returns” is another volatility system which is TOS-certificated.
The system doesn’t trade often. Backtests range with a yearly performance between
-17% (in 2007) and +1963% (in 2010), so it doesn’t show consistent yearly backtest results.
But be careful here, such astronimic 4-digits results are only possible with 200% XIV allocation.
There is no mention of that in the description > (as warning for new subscribers!).
Because of this double exposure, 100% autotrade-scaling is (in my opinion) not recomended.
It’s risky to trade more money that you own!
Followers are strongly recommended to downgrade scaling of this strategy to their own portfolio.
For example, I do use only 2% autotrade-scaling with this volatility system,
but it still has been very profitable by making more than 2K in the last 2 weeks.
There was a webpage with backtest results before, but it’s closed now. Not sure why.
Other C2 volatility traders on my watchlist, which I’m not subscribed (yet).
“VIXTrader” looks also like a rock solid long-term volatility system.
The 62.5% profit with only 7,5% DD is quite amazing, but no TOS.
Backtest results do also look positive in long terms.
“Volatility Fusion” is also 100%-TOS certificated and looks like a good long-term volatility system.
In the fist six months it made 50% profit. Backtest results do also look good in long terms.
Maybe two other possible future candidates… (but wait a few months!)
“Trend Countertrend” had a good performance so far. But there are no backtest as well and no TOS.
So only time will tell…
“Ultron VIX IRA Fund” could be also a interesting system. Of all the strategies offered by Ultron,
this one seems to be the most conservative one. Beeing long-only and suitable for IRA-accounts.
But Ultron dosn’t provide a backtest and there is no TOS.
One has to invest more than the recomended minimal 5000$ here, to equalize the high 249$ monthly fee.