A great couple days for the delta neutral models QLD/QID and SCHB/SH. Friday was as picture perfect a delta neutral day as could be imagined. A slow start out of the gate gradually built momentum throughout the day as we were limit stopped out of QLD and SCHB and then reaped some nice gains in QID and SH into the close as S3 pivot support levels held firm. So, if we can make the big money with the Qs model why even bother with the S&P based SCHB/SH model?
the answer is that SPY and QQQ do sometimes diverge and the SCHB/SH model is a nice safe jumping off point for traders still trying the understand the delta neutral strategy while still outperforming a SPY based directional trade and with reduced drawdown risk.
