Bull Vix: Vicious Accuracy

The Bull Vix now has vicious accuracy due to its new algorithm.  The results from a 10 year backtest indicated that the algorithm’s performance for its defined trading periods after an occurrence of a Bullish Sentiment Anomaly (BSA) were flawless.  The Bull Vix produced a profit from trading the CBOE volatility index (VIX) for all 16 of the post-BSA trading periods. 

Bull Vix’s algorithm harnessed the VIX viciousness by eliminating drawdowns and reducing volatility for the signals to trade the volatility index.  The Bull Vix generated an aggregate gain of 448.3% from January 14, 2010 to February 27, 2020.  

This algorithm has been integrated into the Bull Vix’s signals to trade the most recent Bullish Sentiment Anomaly (BSA), which occurred on November 12th.  Prior to the development of the new algorithm, the Bull Vix utilized the BBT Algorithm for its signals to trade during the 5-week periods following a Bullish Sentiment Anomaly (BSA).

The developmental breakthrough of this new algorithm was the discovery that 16 of the Bull Vix’s post Bullish Sentiment Anomaly (BSA) 5-week trading periods after a BSA occurrence from 2010 through 2020 were clustered into seven elongated 24 to 98-day trading periods. The result was the reduction of trading periods for the 10-year period.  The change for the Bull Vix’s signals eliminated all of the risk for investors who have minimum investment time horizons of 98 days.

Notable performance statistics

• Aggregate gain for each of the 16 of the trading periods ranged from 0.6% to 74.1%.
• Average gains of 28% per period and 44.8% per year.
• Invested for 26% of time (649/2,547 days) over the 10 years.

Even though Bull Vix was only 50% invested for its two best performance periods, as depicted in the table below, both had gains in excess of 71%.  The infamous May 6, 2010 Flash Crash occurred within the 04/15/10 to 5/20/10 period; which produced the Bull Vix’s top-performing gain of 74.1%

Bull Vix’s signals produced aggregate short-term gains of 448.3%, while being at risk for only 26% of the trading days for the 2010 to 2020 period.

Bull Vix has two (per BSA occurrence) subscription offerings:

• Bull Vix $49– ideal for IRA and 401K retirement accounts
• Bull Vix Pro $499– ideal for both defensive and aggressive investors

Bull Vix Pro recommends call option strategies to enable both defensive and aggressive investors to buy call options for the VIX or VXX, UVXY, and VIXY securities which mimic the VIX after a BSA occurrence.  The call options have a high probability of increasing by several hundred to 1,000 percent.  The potential for such gains is depicted in the chart below by the green shaded areas indicating the Bull Vix’s 16 post-BSA occurrence trading periods to trade VIX spikes from 2010 to 2020.

Bull Vix Pro enables long term buy and hold investors to generate cash profits to offset the paper losses for their long term holdings after a BSA has occurred.   The probability is high for a decline of 20% for the S&P 500 after a BSA occurrence.  The S&P 500, at its post-October 2018 and January 2020 BSA occurrence lows, declined by 20% and 35% respectively. 

The Bull Vix’s call option strategies for the VIX and UVXY, VXX, and VIXY securities can be utilized to hedge against potential portfolio losses.  For example.  Assuming a $1,000,000 portfolio and a 20% decline for the S&P 500, the potential loss could be $200,000.  Call options to purchase the VIX and related shares could potentially increase by five to 10 times from the beginning to the end of a Bull Vix Pro-defined trading period.  Thus, approximately $40,000 would be needed to generate an offsetting gain of $200,000 to $400,000 to protect the portfolio.