Volatility Returns - 300% Cumulative Return (as of 2.15.2017), $29/month

Trading and Markets
1

We’d like to introduce our trading strategy: Volatility Returns (https://www.collective2.com/details/101429306). It’s a volatility / VIX related strategy that (i) has high historical returns, (ii) is 100% TOS and (iii) does not cost a fortune ($29 / month).

The strategy is completely objective in that it follows an algorithm; thus prohibiting us from making any subjective decisions. We learned a long time ago that trading based on our personal opinions loses money whereas following an algorithm (that works in all types of macroeconomic environments) makes money.

The algorithm provides only three types of positions:

(1) 2 x Long XIV (this is a 100% leveraged position (so, if our cash balance is $1000, we are trading, on margin, $2000 worth of XIV)), or

(2) Cash, or

(3) 1 X Long UVXY (this is a 100% fully allocated (non-leveraged) position (so, if our cash balance is $1000, we are trading $1000 worth of UVXY)).

Although our strategy has averaged around 2 legs of a trade per month (i.e., 1 buy and 1 sell) over the past 10 years, some trades can last for months. That’s one of many reasons why we stress that people should have a minimum of a 5-year time horizon in order to smooth your returns.

Through backtested results, our strategy has produced impressive returns for the past 10 years. Please have a look at Volatility Returns Description to see those backtested returns.

Of course, with such massive returns, there are plenty of risks. That’s why we would never suggest anyone follow it without at least a 5 year time horizon and with only a small percentage of their total portfolio. There will certainly be plenty of losses along the way. If you can’t handle the losses, then this strategy is not for you. We appreciate that 5 years is a long time horizon, particularly within the world of C2 where people want instant returns. However, to compensate for the long time horizon, we’ve made our strategy extremely affordable so that most can afford it over the long term.

Because the strategy historically trades on average less than 2 legs of a trade per month, you don’t necessarily need to be on auto-trade in order to keep up with our strategy.

C2 currently mentions that you need $25,000 minimum capital to trade our system. However, that is not accurate and you can trade with significantly less than that as long as you scale appropriately.

Thank you for having a look at our trading strategy.

2

Interesting that your strategy held through the June spike. Would it have held through the August 2015 spike? At 2x leverage, you can only afford a 50% drawdown on XIV, and that occurred multiple times throughout 2015 and early 2016.

3

Thanks for your question LMUS. The strategy returned 10% in August 2015. Our algorithm attempts to do well in both high and low volatility environments. There have been and will certainly continue to be losses (and those losses have been and likely will be substantial) but our goal is that the gains far outweigh the losses over a long period of time (i.e., 5 years).