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VIX Swing Accelerating Equity Curve

Posted by David Bean on

The VIX Swing trading system has been a strategy that we have "been watching" call these market moves. The move from January 1, 2018 has given this strategy an accelerating equity curve. This strategy is a long only dip buying strategy and it does not have a stop loss. We don't trade it since it does not have a stop loss. What is the purpose of a strategy without a stop loss? You can trade the Money Management Algorithm version which does have a stop loss. The Money Management Algorithm waits for the base strategy to go into a drawdown and then starts taking trades based on the original strategy using a $500 stop loss and $1000 profit target. 

The Money Management Algorithm version was in the portfolios but it has not traded since September 2016 since the base version has not had a $3000 drawdown per contract since that time. Late last year we mentioned that you could trade the base version using a $3000 stop loss if you want to sync up in the short term with this current straight up market. This is still the case. It is an aggressive approach since the lookback window is less than two years while using a $3000 stop loss (while the base version tests well back to 1997) Otherwise, you can trade the Money Management Algorithm version.

The base version can be leased while the open code is included with our Money Management Algorithms.

We may start trading the base version with a $3000 stop loss soon as it is difficult to watch this strategy do so well and not trade it. This approach could also potentially work on other very trendy markets as Crude Oil could be the next market to move into a strong multi-year trend.


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