Using the VIX ETNs, yes, very small. Most months have 0-3 trades. Using VIX Futures, the strategy would trade at least a little bit every day. This is 2000 days of data, so I'm comfortable with the sample size.
I input the data right before market close - the system spits out a decision (long, neutral, short) and I enter the trade manually. +97.60% YTD through June 2012.
Looks like your doing a quite a bit of short trading in addition to long trading... The simplest way to get rich with VIX is wait for a 30+ spike... Wait a month for the market to settle down a little and buy dips. Wait for euphoria then sell... Warren buffet style trading. Buy the crashes sell into the euphoria. Sub 20 VIX. Most people don't have the balls for it. Backtest that and it gives you an equity curve even better than this guy...
so have you backtested your 'simple' way? you must be worth tens of millions if it is that easy, right?
Check this guy out. his systems look legit. this is just his gold results. http://2.bp.blogspot.com/-Jz-2fEwcygg/T-MPTMC9f7I/AAAAAAAAAFw/SnanYRIGXRs/s1600/goldegg+equity.bmp I've been following him for a month or so and it is just fantastic. I think his results speak for themselves. Its a hybrid of Automated trading and personal judgement.