Going forward into the second half of the year the general consensus is that things may get a bit rough as earnings expectations and guidance are down, auto sale are terrible, home sales are stagnant and the political environment is explosive, to say the least. Here then are some examples of how our diversified risk managed portfolio has fared so far.
First, the benchmark default delta neutral model has lagged the last six months.
While the momentum based VIXEN (based solely on volatility, not price) has done well with a rather amazing 95% linearity and a much happier drawdown than the benchmark buy and hold QLD..
Then there's our old friend VXX, the VIX proxy ETN that has come back like a zombie from it former depise and replacement by VXXB only to be reincarnated again as VXX. I still consider this the greatest trade of all time when I advised shorting this guaranteed loser when it was at 900.
We're using the VIXEN momentum model with this toad and the results are actually quite good.
Finally, my hands down favorite low risk no brainer easy money trade. The risk adjusted SPY proxy ETF SPLV using our MR3 (3 day pullback) mean reversion model has a drawdown and win/loss ratio that should make this little nugget of trading gold part of every portfolio...IMHO.