As you all saw the $vix spiked to 31 in October. From $11 to $31 and back to $12 all in basically a month. Trading without a strategy to exit your positions could get you very hurt and many times it is tempting to forget the strategy and use your better judgement. (almost always is bad idea). Look below at the chart of $uvxy during this same time period.
As you can see if you were short like the VIXTANGO strategy told you to be September 17th, you would have covered that position on the 22nd for basically a wash. On October 3rd you would have gotten short $uvxy again and you would then be covering that position in a very choppy market on the 7th for a small loss again. (tough) October 8th you would get short again and the 9th you would be covering that position again for a small loss. (very very difficult, DOES THIS STRATEGY even work?) Next 6 days you sat in cash as $UVXY went from $26 to $56...wow. Rolling up shorts could have worked, but you would need a lot of patience and money and guts to hope it didn't go to $100. So now on OCT 16 $uvxy hits $56 and reverses and closes at $46. Big move. OCT 17 VIXTANGO strategy triggered short on the close of $41.87 and didn't have a close over the TRIGGER line for the next 20 days. You would be covered your short at $22.18 yesterday NOV 13th. That is a 50% trade! Yes you got chopped up for a few percent here and there, then missed a 100% move against you, but then caught a 50% move! That is why this strategy works.
It is very difficult to trust it. I have learned that the correct amount of money that you are willing to put in and not stress over helps. If I have too much in, I always want to bail to early or roll up shorts because I have an opinion. Opinions do not matter, just the chart and price action.
Hope that is helpful!
VIXTANGO
It is very difficult to trust it. I have learned that the correct amount of money that you are willing to put in and not stress over helps. If I have too much in, I always want to bail to early or roll up shorts because I have an opinion. Opinions do not matter, just the chart and price action.
Hope that is helpful!
VIXTANGO