Updated: May 2, 2019
I’ve stressed repeatedly over the years (perhaps at times sounding like a broken record) that our VTS Tactical Volatility Strategy focuses on safety and risk management above all else. There’s no better way to prove that than tracking it’s performance during those times when you’d definitely want an increased focus on preservation of capital.
The VIX Index can and does spike up violently from time to time (click here to see the top 25 VIX Spikes in History) which in turn causes the XIV ETN to crash. It’s at these times that our conservative trading strategy really pays off.
As you can see in the chart, only 5 times in a total of 36 XIV crashes over 10% since inception was our strategy actually in a trade that lost money. 6 times the strategy was in the VXX which profits from the decline. In total the strategy was actually very profitable during the 36 worst days for the XIV because we were mostly either in cash or in VXX making money off it.
31 out of 36 times we were either safely in cash, or actually profiting from the decline by being in the inverse ETF VXX. That’s what we mean when we talk about risk management. Over 85% success rate at avoiding the worst days.
Want to join the Awesome VTS Community?
* All information, analysis, and articles on this site are provided for informational purposes only. Nothing herein should be interested as personalized investment advice as I make no recommendations to buy, sell, or hold any securities or positions. I'm making this website available "as is" with no warranty or guarantees of its accuracy, completeness, or current's. If you rely on this website or any of the information contained, you do so entirely at your own risk. I do not hold myself out as a financial advisor and nothing herein is a solicitation for any fund or securities mentioned. Although I may answer general questions about the information herein, I'm not licensed or registered under security laws to address your personal investment situation. Past performance is not indicative of future results. Any and all financial decisions are the sole responsibility of you the individual.