As I eluded to last week, I have been planning to make a few changes to the portfolio. This is normal, I’ve done it twice in the last 5 years and I’m sure there will be more in the future as we are always staying ahead of market conditions. They are minor, but I will spend ample time this week and next going over everything. I’ll write daily blogs about them, I’ll make explanation videos, you know my style. Everything will be fully explained and I’ll field as many questions as you have.
1) The new VTS Total Portfolio Solution:
– 50% VTS Tactical Balanced. This is our core holding and will see no changes at all. I love this strategy and wouldn’t change it for anything right now. I’ve spoken about the grim statistics on rates of return and the headwinds investors are facing, and I believe having a tactical core holding such as the Balanced strategy may be the best response to this problem.
– 20% VTS Combined Volatility. See below
– 20% VTS Iron Condors. See below
– 10% VTS Discretionary. See below
2) VTS Tactical Volatility Strategy.
All the volatility strategies will remain as is with the only change being the VTS Tactical Volatility Strategy will now need to use the SVXY. I know last week was a little scary for some people, rightfully so because 115% VIX spikes are not the norm, but I believe the volatility markets will be much better off for it in the long run.
Investing in Volatility as an asset class will grow, it will evolve, and new avenues and products will be introduced in future. We will always stay at the forefront of this growing segment of the market, and of course we’ll navigate it as safely as possible.
* If and when new products become available we will revisit this, but as of now both the VTS Tactical Volatility and the VTS Aggressive Vol will use the SVXY as the short vol underlying.
3) VTS Combined Volatility.
Going forward I will be reporting performance using a 33.3% combination of all 3 of the family of volatility strategies which will be called the VTS Combined Volatility. Of course for simplicity as usual you can select the single strategy that best suits your risk tolerance and just trade that single strategy, but I would like my VTS Total Portfolio Solution performance to reflect every strategy we have.
4) VTS Iron Condors.
In the interest of killing two birds with one stone… Apologies, that phrase always sounds a little violent for some reason. Who wants to kill birds? Anyway, I will be dividing the Iron Condor Strategy into two smaller allocations now. The main tickers used will be SPX or RUT so when trades are taken please pay attention to what ticker we’re using.
As you know in the past when we took Iron Condor trades we just put 100% of the available capital into each trade. Going forward we will be using 1/2 allocations which will accomplish two things:
a) Two 1/2 size allocations will make things a little safer given that each trade will have a little less risk on the table
b) It’ll allow us to be more active and take more trades.
* I will be putting together an updated VTS Iron Condor Strategy introduction video very soon so stay tuned for that. For now, just divide your usual allocation in half.
5) VTS Discretionary.
I’m introducing a brand new strategy called VTS Discretionary that will carry a small 10% allocation. Again we’re going to kill two birds
a) Further diversifying the VTS Total Portfolio Solution with a new strategy will add an increased level of safety going forward.
b) I always try to give maximum value to the community for as little subscription fee as possible and really help everyone become a more savvy investor in the long-run. This strategy will allow me to do that.
* I will be selecting from a wide variety of trades, anything from just going long or short stocks, to various option strategies like calendars and jade lizards, perhaps some pairs trading, who knows maybe even a few Bitcoin futures. I’ll mix it up a lot with anything that I feel is a great trade in the moment.
** I’ll also be digging a lot deeper into the analysis. I’ll write articles, sometimes make videos explaining the strategies from all angles. Why we took the trade, how does it profit, where the risk is, how we utilize stop-losses, the works.
Overall it’ll be a great learning strategy for some of you who are actually trying to build up your knowledge over the years to eventually take the reigns yourself and be a fully self directed investor. With hard work that is possible, and I will always do my best to assist in your journey.
Current VTS Total Portfolio Solution Allocations
VTS Aggressive Vol Strategy – Optional replacement for higher risk tolerance investors
VTS Conservative Vol Strategy – Optional replacement for lower risk tolerance investors
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