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Thanks J for updates My system still holding as well
What was the entry level on the uvxy for the current trade? The "short tna" trade sure needs a major crash to rescue it?
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
I wouldn't hold UVXY during periods of contango. XIV makes more sense.
So you would hold XIV during a short signal? I am confused...Why would you?
yes, nothing but red everyday except 1 since the first short signal, maybe when it longs we will drop...
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 ;)
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
"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.
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
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.
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
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.