Here's an idea that's been in my head for a while....the Vix usually hangs out around 20. Spyders go up over time, and when it doesn't, then volatility, aka the VIX, goes up.
If you long a ETF like a spyder, and shorted the vix, you'd get the upside on the market, and cover your downside. You'd of course have to get out of your VIX position when it hit something like 40, and then back in when it got to within historical averages.
I don't have the sophistication to backtest this, but would be interested to know what people think of this overall.
Sit labore repudiandae autem quia et aspernatur. Natus error enim et. Eaque ut odit optio molestias.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...