My best strategy for S&P500 - SP500Trader

After 2 years of development and testing I am happy to start my best strategy ever for S&P500 :wine_glass:

This is a great strategy for the conservative investor.

The strategy trade the symbol SSO which seeks daily investment results that correspond to two times (2x) the daily performance of the S&P 500.

The strategy enjoying from strict RM and trade only the Long side.

Back testing and live results shows performance of 40%-60% annually and DD of less than 10%.

Hope you will enjoy from the strategy as I do :slight_smile:

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That would be very impressive if you can achieve those results.

The challenge I faced during developing the strategy for S&P500 is to find the best time to enter the trade…Not the best price but the best time…

I found out that my current system for the VIX can give me the answer which is quite simple: I should trade when the investors are optimistics and get out when they are pessimistic… Simple as that… From this point the development was much faster…:slight_smile:

I like this strategy very much because it is suitable for almost any investor and can be applied in almost any account size…

I like also the idea to split the funds between different strategies in order to reduce the DD as much as possible which is, from my opinion, this is the well known secret which anybody should adopt to achieve good performance…

Yes. Hopefully strategies with low correlation.

You probably know that the VIX can go down while S&P500 will go down as well…

The market is in correlation until the correlation stops… This is basically a RM field…

We all know VIX is highly related with S&P500, if you are using the algorithm from your VIX strategy, will this S&P500 strategy have the same risk with your VIX strategy?

The risk is totally different…
When S&P500 going up 1% usually the VXX will go down 3.5%-4% and vice versa… Lately we even saw a move of 9%-10%…

So the risk is much lower in the SP500 strategy if you compare it to any VIX strategy risk…

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Absolutely. VIX can tear your face off if you’re not careful.