etfmsolutions: Model Updates with Various Strategies......07.07.2019

Sunday, July 7, 2019

Model Updates with Various Strategies......07.07.2019

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.

Commentary and Updates

Mosaic Solutions commentary is typically published daily as time permits and market action warrants.
Posts feature Mosaic model updates including delta neutral stops, VIXEN directional trades and PONZO forecasts.

NOTE: Posted risk exposure indicators, signals and metrics apply to Mosaic models only. They are not directly correlated with price movement in the major market indices and can not be used to forecast directional changes in those instruments.
Each Mosaic model is a unique blend of risk factors and must be treated accordingly.

TRENDX is a proprietary Mosaic market signal that blends volume, RSI, momentum and rate of change.

ETF Mosaic Solutions and the editors of Mosaic Solutions are neither an investment advisory service nor registered investment advisers or broker-dealers and do not purport to tell or suggest which securities or currencies readers should buy or sell for themselves.
This site and related software products are for research and educational purposes only, and nothing herein should be construed as an offer to buy or sell, or as a solicitation of an offer to buy or sell securities, or to provide individual investment advice.

Investing is risky and past performance, whether actual or tested, is no guarantee of future results.
Any quantitatively derived allocations referenced herein should only be starting points for conducting your own research.

You are responsible for your own trading decisions and resultant gains or losses. When in doubt, please seek professional guidance from a registered adviser who can respond to your personal needs and risk profile.