We’ve wrapped up the 5 part Risk Adjusted Return series so now everyone can dominate the water cooler talk with mention of ulcer indexes and correlations 🙂
Seriously though this stuff is important because we don’t just want to do well in bull markets, we’d also like to have a chance to survive during bad times. This is why I don’t ever trade any strategies that don’t have a built in answer for when markets go the other way.
– The VTS Tactical Balanced has the bonds and gold allocations.
– The VTS Tactical Volatility and Conservative Vol both hold a lot of cash as well as the potential for long vol positions (VXX or VXZ)
– The VTS Iron Condor doesn’t specially do anything different, but iron condors themselves are theta negative trades which benefit from higher volatility.
Now it’s been incredibly frustrating for the past year when the S&P 500 can’t even manage a 5% correction and volatility is as low as it’s ever been, but it won’t last forever (I hope) and we’ll definitely have an opportunity to use the safety positions to our advantage. Right now though we just need to be patient because we find ourselves once again at all time highs.
Enjoy the video
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