Sunday, January 4, 2015

Keeping it Simple

As I look back at my trading for 2014, the area I most consistently outperform is in the volatility area. There are natural edges trading the fade in fear, and the built in contango in XIV et al, which is nearly always good for a positive trading bias.  Also since the end of QE the market has begun swinging more allowing for a two way trade to develop.  Therefore, 80% of my trading will be swinging between TVIX, and SVXY, with occasional purchase of puts on VXX or UVXY.

The other area that will benefit from the end of QE is the Gold/miner trade. I am not saying gold and miners are ready to rock, but we will start swinging again which will allow some trading profits.  I intend to trade and follow the following.  SLW, NUGT/DUST, DGP/DGZ.  This will keep me quite busy n the stock market for 2015.

Specifically regarding the volatility trade, I will post the performance in a weekly graph. My goal is to take $50,000 and turn it into $1,000,000 in 5 years.  My intent is to be fully invested either long or short, and I will use no leverage or options.  The other trades I will post buy my buys or sells only.

Right now, there is no official stock position in vol right now, but I did post a purchase of Jan UVXY 25 puts on Friday.  I am waiting on my signal to fire to  buy some SVXY.

No comments:

Post a Comment