I encourage developers to follow. I will try to keep pricing as reasonable as possible for as long as I can.
Give me some feedback!
Vix Lite is a very carefully laid out system that trades Xiv long, but also shorts a network of very low correlated 3x ETFs. End result is a pretty good return with a respectable drawdown.
Low correlation, and taking position sizes of 5-20 % in each instrument, helps mitigate big drawdowns.
On occasion, I may take on a well planned larger position.
The truth is, markets will change and in my opinion, strictly trading Xiv long, will not endure. As we go from a raging bull market to a more volatile market, trade leaders will find it challenging to maintain results, and subscribers will be scrambling for the exits as the walls start crumbling in. I predicted a lengthy bull market due to a lengthy bear market, but it’s the 7 inning and game time is running out. Truth is, virtually every system went belly up after the horrific recession of 2008.
Like Chuck Heston, I intend on being that Omega Man. That is why I created Vix Lite.
Some Shorting Notions
In my opinion, many experienced traders know shorting leveraged ETFs is the future.
Some novice traders may shy away from shorting, but it’s been profitable and ez for me due to,
A. Holding small position sizes
B. Holding a group of non-correlated instruments.
C. Shorting at the appropriate time(shorting percentage wins have been very robust in various trading environments going back to 2007.
D. Shorts are only held anywhere from 3 days to several weeks. Added benefit of Vix Lite being a swing trade system is, you can enter the trade at a later time, if you see a pullback or still be able to catch a large portion of the win since there is ample time.
E. I believe experienced traders know about the power of decay, as these 3x ETFs work in your favor as they erode as time goes on.
There are those that may say that sometimes it’s hard to find shares to short, but I find shares most frequently and have not had much problem doing so. Not to worry, Vix Lite is still profitable even if you cannot find shares to short. You can
Short a 2x or 1x equivalent, or simply go long the normal 3x long.
Typical drawdowns for Vix Lite, per instrument are about 5%
Most fall in the 1-9%. Any larger drawdown, which may occur very rarely, will be absorbed or mitigated by the diversity and low correlations and small position sizes of the instruments as it would most likely be 5-20% of the system.
One can further mitigate any loss by allocating 20% or less towards a we’ll balanced portfolio.
A drawdown of 20% or more seems unlikely in my opinion due to the diversity and low correlation of the instruments. And if one were to allocate 10-20% of Vix Lite towards a portfolio, that would translate to 2-4%
I’m of the opinion that when markets start to change in the spring or next year, or whenever, this system will be a model for many trade leaders.
Fellow traders, be cautious, don’t trade more than you can afford to lose, trading is risky and you may lose money doing so. All ideas above and below are strictly my opinion.