Looking for a Inverse Volatility ETF w/ (high volume and decay)

Discussion in 'ETFs' started by Newmoney24, May 5, 2013.

  1. This would essentially be the opposite of UVXY. I like UVXY Because after a crash shorting it is very effective,
    I'm looking for a volatility ETF for before the crash-- I wanted to have decay too
    --In this way even if the market continues to go up a bit, with the decay it would minimize that upside (I would be short it) - And when the market crashes one could make a lot of money -- Still I haven't been able to found a decaying inverse volatility- that closest I found is XIV but that doesn't have decay (which I want)

    Does anyone know of any?
  2. Do you understand how the vol etfs work? They are based of the vix futures and their decay is based off of whether the futures are in contango or backwardation. So, it doesn't matter whether you want an vol etf to have "decay" as you put it, it depends what the vix futures market is doing.
  3. Yes.

    Beginner's books cover this material.

    The vocabulary you are looking for is found in both beginner's books written by William J. O'Neil. See HTMMIS and 24 essentials ....)

    The specific topic is "Climax Run".

    For trading purposes it is best to use leading indicators of price. I use about 10 to 12, personally.

    If you are going to work as scientists do, then you may want to dump the "wanting". Secondly you may want to dump the inductive emphasis you got caught getting involved in.

    One reason WJO'N is a good example for you to take note of is that he started with little capital and reasoned while compounding his intitial capital. In 27 months he assembled enough capital to build his IBD empire.

    From what I see in this thread, you are not even working with the independent variable to find out what the dependent variable WILL DO for making money.
  4. jem


    Oneill also blew up multiple "new america" funds.

    For every strategy there is a season.

  5. Karma police, arrest this man
    He talks in maths
    He buzzes like a fridge
    He's like a detuned radio

  6. It's not exactly clear what kind of decay you're referring to. Are you referring to the decay that occurs with leveraged etfs?
  7. NO but I damn sure wish there was one.
    For at least 2 years now I've been lamenting that there is no 2X version of XIV available nor in the registration process.

    I find that odd and frustrating because (2x VXX ) uvxy and TVIX have been around for a few years.

    XIV as you have already identified is the closest product, with that being said I didn't grasp from the above exactly how you plan to use it.

    Btw : You are wrong about XIV not having "decay" ,it does have some due to daily re-balancing as a -1x fund but it's not as powerful as a -2x fund.

    I figure CS knows it would be one hell of a rocket thus their disinterest in creating it.