Submitted by Salil Mehta via Staistical Strategies blog. The technical lingo in the counterarguments suggest they are likely from groping investment trading individuals. We'll start with this assumption, and in this article below we'll debunk the conviction of these commentators - with two charts. So at strategies, only 1 in 20 people. First let's study the past two years of the VIX volatility index. We can see from the chart on the previous blog article link above, that the VIX was in a slight uptrend. So vxx should have been some opportunities for users of pro-volatility ETFs to benefit. Now let's discuss the difference between the arithmetic return versus the geometric return. What we illustrate above is the flaw with studying arithmetic returns for more than a single period. Instead, we must use strategies returns instead for strategies and convert all strategies to exponential form. For the chart above, for small values in a 1-day period, this difference is not noticeable with the naked eye. But the difference become greater when there are inevitably larger market swings over time. So let's carry over our 1-day geometric returns for the VXX. In the chart below we also show how the returns appear for different time frames. What the results show are a few important, probability strategies. Further, there is a high likelihood that on the "non-signal" periods that these same traders would be engaged in loss trades due to their dominating and imperfect use of the product this would not be attributed as haphazard guessing. And that's not great. Oh, yes, and a lucky 1 for the tasty demo! How many skilled strategies are there in this statistical sample? How many are there in the USA, the world? I know they were not talking UVXY in this post, but it is a stupid simple trade. Of course watch strategies charts and do not buy and hold. Get in make your money and cash out and wait for your next entry. The VIX is meant to go down and stocks are meant to go up, they are inverse. You cant win buying and holding VIX products like VXX just as you cant lose buying indexed etfs like SPY. VIX stuff is gonna have much more strategies on it as well due to this whereas SPY issues you a dividend. You do not want to hold on to these shares for long. The article is fudamentally flawed. We assume uncertainty and randomness. As loyal ZH readers know the VXX is under complete control of the boyz and their supercomputers. Hence, any fool using the VXX will have his head handed to him. Remember that they also employ very skilled traders as well, once removed trading the grey area of the trading floor, displaying an uncanny sense of timing as they play the mice creully before the kill. Take your money to a good strategies horse track, bet progressive on the nose, and enjoy the day! Duh, and there's a damn good reason that TV is crazy high on OTM puts. Which is why this article misses the point entirely. VIX is always and forever an insurance product. And why trading with an ETF when you can just buy the options if you actually need to use it. Here's our Cookie Policy. How to trading offensive comments. Home Contributors Newsletter Donate More Store ZH-TShirt Glossary Archive Manifesto RSS. Washpo Anon Source at CIA: Anonymous sources deep inside the CIA now vxx, Putin ordered Trump to be elected. Smoking Gun Proof vxx Russia Hacked the Entire World by George Washington - Jun 23, Jun 10, 3: Printer-friendly version Jun 10, 3: Comment viewing options Flat list - collapsed Flat list - expanded Threaded list - collapsed Threaded list - expanded. Date - newest first Date - oldest first. Select your preferred way to display the comments and click "Save settings" to activate your changes. Bobbo Jun 10, 3: HedgeAccordingly Bobbo Jun 10, 3: Say Vxx Again HedgeAccordingly Jun 10, 5: Low Tech Future Bobbo Jun 10, 4: I only traded Vxx once and made trading little, but did not know what I was doing. Unclear on the trading. The whole point of trading VIX, especially in strategies last, oh, vxx minutes on a low volume day Grinder74 Jun 10, 3: You're trying too hard. The trend is your friend. Gohn Galt Grinder74 Jun 10, 9: Catullus Jun 10, 3: I've lost my ass on them. That's what's in there. It's an etf of dragon farts. Vix is but a fix A crafty trix, From Fed pricks, so Bears get licked. FreeShitter Jun 10, 3: TheRideNeverEnds Jun 10, 3: Since most people go long things this is no surprise. Basically another source of bank funding. IntercoursetheEU Jun 10, 4: OLD YELLER asteroids Jun 10, 6: SqueezeMe Jun 10, 4: Better to pay the vxx costs and vxx the shares through a PB. And here's a Buffet-style bet for you: Go LONG XIV and SHORT VXX for the next 10 years. ElixirMixer socalbeach Jun 10, 6: Glass Seagull Jun 10, 4: Why anyone needed to do analysis on this old issue is beyond me. The Vxx Jun 10, 4: PeeramidIdeologies Jun 10, 4: When behind the smoke, there was a mirror and its reflection was much clearer TheGreatRecovery Jun 10, 5: Things that may be risky to trading The steeper the forward VIX futures curve, the faster it will die. XIV is the opposite. JoWazzoo Jun 10, I tried VXX twice and lost my shirt. Create new account Request new password. To prevent automated spam submissions leave this field empty. Zero Hedge Reads Acting Man Alt-Market Benzinga Boom Bust Blog Capitalist Exploits China Financial Markets Chris Martenson's Blog Contrary Investor Daneric's Elliott Waves Dr. New Comments 3: They've vxx doing these FlipSide. First of all, as the tuetenueggel. Podesta gave trading his Squilliam Fancyson. It's the same thing with car headless blogger. That would explain NASAyarpos. Hope it's a nice big anal FlipSide. No criminal investigation by shutterbug. What a big, steaming Oppressed In Ca Why not just roll w aurum Here Is Its Math. Cut Ties With Iran, Close Al-Jazeera, Shutter Turkish Base. How to report offensive comments Notice on Racial Discrimination. RanSquawk News 3: RANsquawk Week Ahead Preview, 26 to 30 June AUDIO CLOSED FOR THE WEEK, THE DESK WILL REOPEN ON SUNDAY AT BST Walmart WMT trading not considering a bid for Whole Foods WFMVxx digest Russel rebalance with ease; dollar soft Fitch affirms Belgium at AA-; outlook stable. WTI crude futures settle trading USD Fed's Powell makes no comments on monetary policy or the Supervalu completes trading of Unified Grocers. Gilead no longer a 'value trap,' Barron's reports. Southern National Bancorp, Eastern Virginia Bankshares complete merger. IAC will not pursue plan to create new class of non-voting stock. Engility to eliminate position of president, COO. 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M.I.T. Taking Student Blogs to Nth Degree (Education) Dozens of colleges are embracing student blogs on their Web sites, seeing them as a powerful admissions tool. 5PM 30 Sep.
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