Profit from Volatility with SVXY (was XIV)
Automated System Reduces Risk, Increases Returns.
What is AlphaVol Inverse Volatility Strategy?
AlphaVol SVXY (was XIV) Long strategy is a automated system that allow you to profit from stock market volatility. It has the following advantages::
- Adds alpha to portfolios while risking less capital
- Increase returns of existing portfolios
- Additional / alternative asset class
- Not directly correlated to equities
- Market Volatility is more mean reverting than indices
- Can make money even if market doesn’t rise
- Can be used in IRAs and other limited accounts since no options or shorts are used, ETN
Adds Alpha with minimal capital exposure. Great addition to existing portfolios including fixed income.
The AlphaVol system uses a simple daily signal to buy SVXY a Volatility ETN, or go to cash. An email or text message is sent before market close so there is plenty of time to make a trade if required that day. Typically 9 roundtrip trades per year, so trading costs are limited.
Minimizing Drawdowns is the key to Success
The proprietary signal moves the account to cash to avoid large drawdowns, maxmizing returns and of course, making for estatic clients. Uses mechanical indicators and filters to get out quickly.
Can be used in all types of Client Accounts
Since the system uses an Exchange Traded Note (ETN) it can be used in all clients accounts inclding IRAs or other retirement accounts. No shorts or options used, so no special custodian needed. Great to add to fixed income portfolios to enhance yield. Typically advisors allocate 10 to 25% of a client’s portfolio to this system.