This is another version of the X sector model but we've juiced up the returns by adding XIV, the VIX inverse ETF that obviously behaves like a wildcat, so attention to money management stops is not suggested...its mandatory. The performance metrics are a bit scary and this is clearly a model best used by those willing and able to actively manage their account on a day to day basis using the P stops.
Note that this is NOT a delta neutral model...there are no beta offsets to the portfolio components....these are all ETFs that flourish in bullish environments. The way we control risk is simply by going to cash in times of market neutrality or bearishness...thereby further emphasizing the need for paying close attention to the stops.
