Discussion in 'Educational Resources' started by jim.thornton, Oct 10, 2017.

  1. I was curious here if anyone has subscribed to and if their volatility strategies actually work in real life as they claim?
  2. wintergasp


    Dude you should at least get 1,000 Posts before trying to scam us.... 46 posts and the "I have nothing to do with this but what do you think about it?" is almost an insult
  3. Don't be so ignorant!

    I'm asking a serious question. Keep the trolling away please.

    You don't think it is possible for someone "somewhat" new to a forum could possibly ask a question about a service that charges money?

    Does anyone have anything worthwhile to input about this please?

    Disclaimer: I am not involved in this and am asking a SERIOUS question. So please refrain from posting unless you have something to contribute. I son't particularly like being called a "scammer".
  4. Overnight


    Well, here is a serious answer. Have you seen this bit in this disclaimer of theirs?

    "...Additional performance differences in backtests arise from the methodology of using the 4:00pm ET closing values for XIV, VXX, and ZIV as approximated trade prices for indicators that require VIX and VIX futures to settle at 4:15pm ET."

    Can your capital accommodate their styles and methodologies?
    beerntrading likes this.
  5. Sure. I'm pretty skeptical of the methodology they use because they are not explicit about the assumptions they make for hypothetical trading (commissions, bid/ask/mid, exchange fees, signal on O/H/L/C...), but do disclose that the assumptions made may affect performance. Couple that with some monster draw downs, and some likely poor execution in the hands of a trader relying on these signals, the BxA spread losses, and commissions, and I would doubt the strategy is a winner.

    Furthermore, they are not using common dates to evaluate their trade success--the 2-indicator strategy starts on 2/2/16, and an apparent reversal point from relative lows, while the 1-indicator strategy is based on 2/19/16--when we'd already had a 10 point jump and return to about 21 (and presumably a confirmation of reversal the other way). So this looks very much like sufficing data rather than academically rigorous testing.

    Finally, the caveat emptor, if the person with this strategy is really getting that kind of returns out of a reliable strategy; they're getting filthy rich and spending their time spending money, not hocking subscriptions for $30 per month.

    If it's too good to be true, it probably is.

    And an observation given how I use the VIX--this strategy would not be an over-arching strategy to invest 100% of capital in, but one to compliment a bullish mid-term trading or long-term investing strategy. But the strategy itself is built to be constantly monitored.
  6. Overnight


    You already typed that in Latin. If they cannot be bothered to figure out what it means, don't tell them. You're giving them a handicap in golf trading or something, hehe.
    beerntrading likes this.
  7. Touche. But I also typed 4 paragraphs that you summed up in 4 lines. I didn't get there with efficient prose. :p
  8. Overnight


    You have to be into the whole brevity thing. Dude. :)

  9. I'm not really looking at following their trading system exactly. I was really more curious if anyone has used it and if their indicators are at all accurate.

    I read an article about a year ago and ended up deriving my own system from one sentence that was in this article I read. That system has triggered 3 trades since the end of March and has returned over 36%. The account that I implemented this system in is sitting in cash right now waiting for the next trigger. seems to have a two gauges and they say it time to go long when both indicators confirm it, and vice versa.

    I'm not thinking at this point of allocating any capital to this strategy, but I am curious if anyone has actually used it.

    I totally get the arguments "if it is too good to be true, then it probably is", but at the same time, it doesn't mean that something profitable can't be derived from it.

    Has anyone here actually used the service?
  10. Jack1960


    Why not try it. Many services are very good. If a good investor does not want to manage other people's money, running a serve such as the one you mention is a good way to help other investors.
    #10     Oct 10, 2017