The Volatility ETF Trader product is an algorithmic strategy that trades several VIX ETFs using statistical and machine learning algorithms.
We offer a version of the strategy on the Collective 2 site (see here for details) that the user can subscribe to for a very modest fee of only $149 per month.
The risk-adjusted performance of the Collective 2 version of the strategy is unlikely to prove as good as the product we offer in our Systematic Strategies Fund, which trades a much wider range of algorithmic strategies. There are other important differences too: the Fund’s Systematic Volatility Strategy makes no use of leverage and only trades intra-day, exiting all positions by market close. So it has a more conservative risk profile, suitable for longer term investment.
The Volatility ETF Trader on Collective 2, on the other hand, is a highly leveraged, tactical strategy that trades positions overnight and holds them for periods of several days . As a consequence, the Collective 2 strategy is far more risky and is likely to experience significant drawdowns. Those caveats aside, the strategy returns have been outstanding: +48.9% for 2017 YTD and a total of +107.8% from inception in July 2016.
You can find full details of the strategy, including a listing of all of the trades, on the Collective 2 site.
Subscribers can sign up for a free, seven day trial and thereafter they can choose to trade the strategy automatically in their own brokerage account.
