Monday, July 22, 2013

Hold shorts

All systems remain short. Shocking, I know. I will continue to hold. Thx.

15 comments:

  1. Thanks J for updates My system still holding as well

    ReplyDelete
  2. What was the entry level on the uvxy for the current trade? The "short tna" trade sure needs a major crash to rescue it?

    ReplyDelete
    Replies
    1. If you have been holding UVXY this entire time, you will probably need a 50%+ pop in the VIX to get to break even...

      Good Luck

      Delete
  3. I wouldn't hold UVXY during periods of contango. XIV makes more sense.

    ReplyDelete
    Replies
    1. So you would hold XIV during a short signal? I am confused...

      Why would you?

      Delete
  4. yes, nothing but red everyday except 1 since the first short signal, maybe when it longs we will drop...

    ReplyDelete
    Replies
    1. This isn't the only system having issues, but I understand your frustration...

      I am back to even for the entire year... Maybe we will get some relief soon ;)

      Delete
  5. RMI,

    Short signals haven't been working out so well lately, while a long XIV position has. If I wanted to go short during contango, I'd choose something other than a volatility product.

    In fact, even with some violent drawdowns, a long XIV during contango and long VXX during backwardation strategy has been very effective.

    alex

    ReplyDelete
    Replies
    1. "Short signals haven't been working out so well lately"

      No kidding...

      Not sure I understand your logic, but if it works then it sounds like you have a good strategy.

      Delete
    2. Contango is not a big problem vxx has been released on 2008 i guess and since then it has only been 5 days in bacwardation on 2009

      Delete
  6. I'm talking about the VIX being in contango. Since Nov. 2010, XIV has had a CAGR of 45.9; VXX has had a CAGR of -59.5. I would say that is a big problem if you're long VXX.

    ReplyDelete
  7. I have traded XIV last year AL I was very serious and mechanical following my xiv system I did not eliminate any of short XIV signals in the and of year i was able to make 108 % net profit on XIV
    so i don,t see any problem shorting xiv during on contango period . Sure it would be big problem if you re running a long term system but not a problem for short term systems

    ReplyDelete
  8. I'm sure that it's possible to trade volatility. But, keep in mind that XIV was up 154.9% in 2012, with no transaction costs.

    ReplyDelete