Hello gaussian We expect that you apology to us in public for saying that we are committing fraud (scam). That is a crime, and accuse someone without prove it is prosecutable in your country and ours. Otherwise, we will contact the moderator for this. We will not tolerate anyone calumniating or defaming us. We have been very respectful in this forum. Now, you said: “VXX isn't highly leveraged? It's a portfolio of VIX futures that are re-balanced daily.” Barclays (owner of the VXX) and other volatility ETNs do not have to re-balance that position of VIX futures daily. They could have all or part of the money that they manage invested in VIX futures or other products, also they can have that money in cash. The VXX ETN is closely tied to S&P 500® VIX Short-Term FuturesTM Index and closely means that when the VXX moves more than the Index, some Authorized Participants will intervene the market to adjust that. We said that the VXX ETN is not a leveraged product, as if the S&P 500® VIX Short-Term FuturesTM Index moves today 1% the VXX will do the same and that is leverage of x1, and yes there are ETNs or ETPs that have more leverage than that. You said: “More to the point your website claims to trade the CFD as well.” What we say on our website is that our subscribers can open a position using the VXX ETN or the VXX CFD. We put this info on our website because some of our European subscribers cannot use the VXX ETN since last year. You said: “You are aware CFDs are highly leveraged instruments?” If we buy 5 shares of a company called XYZ at $200 and sell them at $250 in a month, you have earned $250. If we use the CFD for that stock and buy 5 shares at $200 and sell them at $250 in a month, you have the same results than with the regular stock. Not counting commissions for opening or closing and others. The difference comes that in a regular brokerage account without margin you need at least $1000 to open that position, with a margin account you need $500 (depends on each broker) and with a CFD account you need as low as 10% of those $1000, but that depends on your broker. What people do, as they “only” have to put $100 to open that position and they have $1000 in their account, instead of buying 5 shares, buy a lot more, and that is when the problems begin. So it is not a leveraged product, but the margin to open a position is too low. Do you understand the difference between leverage and margin? You said: “It makes complete sense why you are discounting this garbage. You had a good run on the parabolically negative slope of the VXX, and now that VXX is coming to an end and you'll have to contend with VXXB you want to make sure you get as much money as you can before your system falls apart at the seams.” As Barclays says, the difference between the VXX and VXXB ETNs is just their maturity. The VXXB will expire on January 23, 2048 and the VXX expires at the end of this month. So we will change our positions to the VXXB at the end of this month, but our subscribers can use for now any of them. You said: “If anyone wants to buy this system, I also own numerous bridges you may be interested in.” Please ask Baron about how you can advertise on his website, otherwise you could be banned. Disrespecting us, point that you have nothing interesting to discuss. Regards
Yes it's my opinion that this investment strategy that you are trying to convince people to pay money to you to find out from you is not safe or prudent and could result in potentially very large potential losses very quickly. I thought it should be clear to everybody now. And turbulent does NOT necessarily mean bearish. If you cannot even distinguish the two, you are really not qualified to advise others how to trade. And second I do not feel that you have a thorough understanding of the product that you are trying to trade and advising others to trade. I would strongly suggest you to read the prospectus of VXX: http://www.ipathetn.com/US/16/en/documentation.app?instrumentId=259118&documentId=6204338
Hi Luis,Checked the "About Us" description on your website,and its still a mystery to who you are. In the immortal words of Connor Mcgregor who da fook are you guys
SignalWin will probably respond if still here, but the strategy as shown is just to short VXX, and hang on. It's not a general purpose trading strategy. It relies, AFAIK, on the tendency of volatility to mean revert. And rollovers and daily mark inefficiencies seem to cause a persistent downward bias. Taking advantage, though, may not be as easy at it seems.
It is very easy to achieve but the drawdowns are huge. Try shorting the longest dated puts on VIX. You can try and hedge with a ten year bond etf and calls.