My best strategy for VIX - VIXTrader

Yeah just to confirm Pippylomgstockings is correct. It just goes from the youngest strategy on. However in C2 explorer you can decrease the time frame by clicking and editing the dates but you cannot go to a date before the inception of the youngest strategy.

Great work Charles!

Most of the colors look almost the same for me.
Can you add a list with the name and the performance of each strategy?

Thank you.

I think in the thread "Compare XIV vs Volatility strategies I am going to break the chart up by length of strategy and do a couple charts. I am thinking one chart for volatility strategies that have been around longer than a year, one for 1 year to 9 months, another for 9-6 months, and another for 6-3. Something like that. I should be able to do that this weekend.

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Iā€™m picky. I like strategies with a consistent reasonable return (positive slope), and controlled reasonable maximum drawdowns. High returns are a bonus. I havenā€™t been through a serious downturn yet with it but Iā€™m hopeful that the system will perform as well on the downside as it has on the upside. There do seem to be strategies in place to control losses. So far, very good and better than anything else I can find on C-2.

This review is primarily of VIX Trader although based on that experience iā€™ve recently also subscribed to VIX Trader Professional.

But i think over time is still going to be cluttered. If we can have top 10 or 15 strategy going in comparison to XIV. As each one crash and burn you can replace the ones that falls behind. Then again it easy for me to say, but you are the one doing all the work. :sunglasses:

anything less than 3-6 month is prob not worth looking at, because its prob just a strategy that gambles on UVXY options and swinging for home run. Since its just paper money, they got nothing to lose. That is one of the issue of c2, a lot of new strategies can all swing for the fences and got nothing to lose. If they got it right, they jump to the TOP of the list on the front page. If they lose everything, they just pay c2 $20 to start over again.

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That is what I see from my standpoint of an investor. Lots of strategies that start very well and they go in flames after a few months. I learned that the hard way, be aware.

I have been talking with Robert for a while and I have been using his VIX Trader model for several weeks. Every traders can claim his algo is the best but without extensive money management, your account will either has high DD and high return or high DD and blow up your acct. Robert has 2 important things: 1. Algo to identify risk in every conditions.
2. Strict Money Management. Those 2 things make his performance more than 1 year works tremendously from the first day he has established his model. With his Great Money management, he achieves low DD 10%, High return YTD 63% (OCT 2017), High Average win $1,805 and low average loss $438. In my opinion, you should have this model in your portfolio. Put aside any speculation in the future, lets the fact shows in his performance.

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100% agree that his strategy is excellent! we keep going off tangent on this post on other strategies, prob everyone feel like im picking on his strategy.

I was a subscriber of VolatilityTrader in January 2017,
and lost a lot of money because of bad management (or lack of).
So I am not sure why that system has been recommended here.
The trader was shorting SVXY for over a month.
Check the chart below (= 53% DD)

Thanks to RobertPeterson (VIXTrader Professional )
& DavidJuday (Smart Volatility Margin) I recovered those losses by now.

At the moment I would give 4 stars rating for the Money- & Risk-Management of VIXTrader Professional.
I would give 5 stars when it would include an exit strategy for an overnight black swan event.
(like Smart Volatility Margin does :wink: )

Thank you also Quantec & CharlesTines for the Code
By the way, I like your ā€œVolatility IRAā€ strategy.
But due to the new C2 price policy, I canā€™t subscribe at the moment.
C2 would charge me 200$ extra a month. :disappointed_relieved:

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Thanks for the shout out and really glad to see you are using that code. No worries for not subscribing. It would take some pretty good returns or a lot of assets to outweigh those costs plus my fee. Also, my strategy is in my opinion unproven to the public since it has pretty much just held XIV for the past two months without a good sell signal. Also, if people do subscribe they should know that my strategy Volatility IRA is NOT HEDGED! I recommend taking profits and only holding it as a part of a well diversified portfolio. For example, my goal is to yearly rebalance so that my portfolio is 15% Volatility IRA, 15% Stock IRA, 40% Long Bonds, 15% Intermediate Bonds, 7.5% Gold, and 7.5% Commodities (Similar to Ray Dalios All Weather Portfolio). Surely I will change this some overtime as I subscribe to other leaders etc., but that is the concept of my strategy Total Asset Allocation. It is meant to represent my total portfolio and my Stock and Volatility strategies are tools for people to use if they want to make those a PORTION of their portfolio and only partially following me. If my mother wanted to invest with me I would tell her to use Total Asset Allocation not Volatility IRA, because she is not a trader and does not need that much risk. It looks like you are probably being smart and hedging your bets by having multiple strategies and not going all in on one strategy or asset class.

Charles, I totally agree about regularly reallocating in a disciplined way among strategies, especially when youā€™re allocating part of your money to VIX strategies. It could be monthly or quarterly or whatever, but it will move you away from VIX strategies after big run-ups, and back into them when theyā€™ve dipped.

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Selective charting or just bad timing?

Kinda not fair to show a chart on volatilitytrader where the DD begins and not show the 400% gain in 2016.

That allocation is very similar to my. Canā€™t focus all on trading vix or just stocks. There are trends and it will run its course. Like short vix and Long tech will eventually end.

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I used the same code provided by Quantec & CharlesTines.
There is no bad timing here, the chart starts when the youngest of those system did begin to trade (=VIXTrader on 3rd of Nov.).

Anyway, in my opinion the 53% DD of VolatilityTrader in Jan/Feb 2017 is far more important than the 400% performance in 2016.

While in January 2017 all other volatility systems went succesfully long with XIV, VolatilityTrader chose to do the opposite, short SVXY.
Thatā€™s OK, but he didnā€™t get out the trade when it was going wrong, not even when it was going very wrong. He waited over a month! :-1:
This shows that the trader didnā€™t care about proper money- & risk-management, and that kind of trading could happen anytime again.

And thatā€™s why so far VIXTrader by RobertPeterson is the better choice by far, symply because of capital preservation and money management.
The 115.6% performance in one year with only 7.6% DD is quite impressive. :clap:

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Yes, it is impressive. I have been subscribed since mid February and have seen nice gains. Robertā€™s strategy is one of the few systems here at C2 which is comfortable to follow. There are many sub-trades which react to, trend, and flow with the market so one has a feeling that constant attention is being given to potential drawdown but with an eye toward taking profits, too.

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Using CharlesTines latest iteration of Quantecā€™s C2 script I ran the following which shows only XIX, SPY, and VIXTrader and gives a cleaner look at performance since the strategyā€™s inception. As some have suggested one definitely could have performed better by buying and holding XIV.

However, the volatile drawdowns and spikes would have made it very difficult to do so. I would argue that prudent management of trades through the period substantially reduced risk while still providing a very acceptable return.

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Few days ago I wrote in the forum EliteTraderā€¦

The thread link is here (if you like to readā€¦):
The secrets behind my best strategy for VIX - VIXTrader

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Well, Iā€™m not sure about that part of beeing more professional and educated in this forum :wink:

But I have to fully agree about one thing discussed by those EliteTradersā€¦

THE OVERNIGHT-RISK

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I quote the last post there of user d08:

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These are my thoughsā€¦

Those Elite Traders have some valid arguments, backtests wonā€™t help in case of an overnight black swan event.
If XIV crashes overnight, the two VIXTrader strategies will be heavily affected, so will be our portfolios.
So far I have reduced the risk of VIXTrader Prof. by diversifying my portfolio with different C2-strategies (non vix)

Why not test & introduce a VIXTrader Daytrader strategy?
Or even better, a VIXTrader strategy with options to hedge the overnight risk? (like DavidJuday does)
I would switch right away to a VIXTrader strategy with a gap-proofed exit-strategy!

i read the whole post on elitetrader. That is a day trader and prof trader forum, much more skeptical than c2. when you make a post about paying a sub fees to follow your strategy, they become even more skeptical. why ? because you show them a trading performance on c2, and that is the best 12 month of shorting volatility in the history. then followed by a back test from 2010, which another strong bull market.

I wouldnā€™t call those traders on Elitetrader unprofessional or less educated. Its actually the opposite in my opinion if you are compare who is on c2 forum vs ET forum.

Well, they are not smart enough to read and interpret a C2 trade record and order details.

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