Imagine you were a hedgefund just playing the Risk on/off trade....
Imagine correlations are all converging to 1...
Imagine you were only playing into the safest bets......
This is how your Performance sheet could look like for just playing our VixOsc and the following Etfs.
Ticker RORAC
(ann. Return on Risk adjusted Capital)
Max DrawDown
VXX 135.2% 15.6%
USO 51.2% 6.6%
QQQ 40.2% 5.7%
JPM 62.2% 11.7%
GS 52.4% 16.3%
BAC 57.8% 22.7%
AAPL 69.5% 6.2%
If we get there with simplified models now imagine what the CHEETAHs of today can do...lightning fast, silent and almost invisible....they can produce multiples of the above....
By the way they are all long the risk trade!
This is a new world of investing. The Hal2000s, Algos & Bots are playing the fundamental Investors, the technical traders and play the correlations and spice it up with plenty of hot sauce (VOLA !!).
Imagine correlations are all converging to 1...
Imagine you were only playing into the safest bets......
This is how your Performance sheet could look like for just playing our VixOsc and the following Etfs.
Ticker RORAC
(ann. Return on Risk adjusted Capital)
Max DrawDown
VXX 135.2% 15.6%
USO 51.2% 6.6%
QQQ 40.2% 5.7%
JPM 62.2% 11.7%
GS 52.4% 16.3%
BAC 57.8% 22.7%
AAPL 69.5% 6.2%
If we get there with simplified models now imagine what the CHEETAHs of today can do...lightning fast, silent and almost invisible....they can produce multiples of the above....
By the way they are all long the risk trade!
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