///This Week
Looks like all is back to normal in the stock market. Volatility is almost back to levels before the sell-off, growth stocks have rallied and all time highs are just +2% away on the $SPY (State Street SPDR S&P 500 ETF) and +6% on $QQQ (Invesco QQQ) . I haven't paid much attention to markets this week because I was away but good trading should be immune to news anyway.
//Trading System (TOKODE.com)
My trading system did not perform badly in the sell-off, I did because I was waiting for the perfect moment to switch to a new algorithm. Won't make that mistake again. This time around, I have made the switch without hesitation to the latest algorithm, a completely new trading system which I finished developing this week. It is a much better one than I have ever traded and I am actually curious to see what it can achieve with four months to go. I have high expectations of this algo.
/Risk On Strategy
This is a short volatility strategy. If there is any reason to worry about the new system, it is in this strategy because of the risk inherent in shorting volatility but adequate risk management has been put in place to deal with those risks. It will hold positions in $UVXY (ProShares Ultra VIX Short-Term Futures ETF) only. Knowing the entry conditions, I expect it to enter a position in the coming week
/Risk Off Strategy
This is the counter-balance to the risk on strategy. It is long volatility and will hold positions in VIX futures. I never really cared much for futures but I now see why they are popular with professional traders. VIX futures are the only appropriate vehicle for an equities risk off strategy. If there is an entry signal next week, my portfolio could be fully sybchronised with the algo by the end of the week. That will be great.
/Index Strategy
This strategy is included to diversify the risk off strategy. To do so, it gets its signals from the equities large cap index. So it trades volatility but is not based on volatility. It currently holds a position in $VIX.SEP24
/Asset Strategy
This strategy is included to reduce drawdowns in the overall system. Just like the index strategy, it is risk off but gets its signals from the traded asset. This strategy has a position in $VIX.SEP24... Show More
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