Their stats are shit.... sharpe below 1... large drawdowns... number of trades quite low. Looks like they lean on the VIX contango as well....
They're holding VIX derivatives for long periods of time...up to many months. That's a ticket to ruin.
Hi. It's Jay Wolberg, founder of Trading Volatility. Sorry about the delayed reply. I launched a private hedge fund in 2017 based on the strategy and have $15M behind it. It's where I spend most of my time and that doesn't leave much time to try to sell my strategy to cynical people who wouldn't buy it anyway. The strategy was first made public in 2013. I track every trade and result on my website but that transparency seemed insufficient to me so I started using a third party (Collective2) in February 2016. Our strategies are +183% and 311% since then (I know. No one cares lol). Over the past 5+ years of running this business I've found that wealthy people love the strategy and have the discipline to execute. Middle and lower income tend to appreciate it less and fail to handle the mental requirements to trade, especially when there is a string of bad trades. I suspect it has to do with oversizing volatility allocation within a portfolio (should be 10% max) and a get rich quick home run mentality. That's not a recipe for success in trading and one of the reasons 90% of people lose money trying to trade. If you can't follow a process don't subscribe (and you shouldn't be trading at all IMO). Our strategy does short vol. We do long vol. It all depends on market conditions. We lean on contango but also momentum. Contango isn't everything as most people tend to think. We're performing on the bad side this year. But on the plus side, we have helped save subscribers millions of dollars by not falling into the short vol trap this year. (R.I.P. XIV. I miss you, buddy.) You can track us at these links if you want. http://www.tradingvolatility.net/p/results.html https://collective2.com/details/100314882 https://collective2.com/details/100707640 I like questions and constructive feedback. I don't spend time arguing or trying to convince people. I can help you. Or not! To each their own.