New Systematic Volatility Trading Models Offered to Investors
Equity Strategy Based on Long-Term High-Volatility Market Properties; Diversify and Enhance Portfolio Performance in Rising Volatility
WASHINGTON, Oct. 6, 2015 /PRNewswire/ -- Managed Futures strategies, despite their common association with long volatility, did not fare as well in the third quarter as some might have expected in a rising volatility environment. As alternatives, the Wall Street Challenger, LLC presents two systematic volatility trading models that benefit from rapid price movements.
Photo - http://photos.prnewswire.com/prnh/20151005/274165
Photo - http://photos.prnewswire.com/prnh/20151005/274166
Nobel Prize winning economist, Robert Shiller, has cautioned against being overexposed in an overheated Market. Furthermore, Professor Shiller isn't saying it's over yet. In an interview, Professor Shiller alleged, "[The selloff] could be followed by even bigger and bigger moves." It could "create aftershocks in either direction in the short-term."
For that reason, The Wall Street Challenger, LLC Introduces Increased Volatility Targeted Strategy (IVTS) and Geared Increased Volatility Strategy (GIVS) investment trading models. These trading models use the mathematical property of underlying funds in a volatile environment. They are designed to achieve a positive investment return in times of long-term high-volatility and declining markets, eliminating the need to "time" the market or make the right market direction call. Originally focused on US equities, a proliferation of bond, commodity and currency-based ETFs expands the applicability of systematic volatility trading models. Paradoxically IVTS and GIVS target volatility but provide stable returns.
Performance 1/2/15-10/2/15 |
||||||||||||
S&P 500© |
GIVS SPX |
GIVS RUS2K |
GIVS EAFE |
GIVS WTI |
GIVS OIL&GAS |
GIVS GOLD |
GIVS €-$ |
GIVS ¥-$ |
GIVS Treas 7-10y |
GIVS BIO |
GIVS SEMI |
GIVS FINANCIAL |
-5.22% |
8.26% |
10.26% |
11.23% |
11.65% |
5.00% |
7.60% |
1.75% |
2.47% |
3.28% |
12.17% |
6.76% |
4.48% |
Fierce gyrations in currency, bonds and especially oil markets create major macro volatility. Furthermore, markets overvalued, sharp intraday moves, or central banks anxiety adds to this volatility. Volatility contributes to the level of concern and worry on the part of investors as they watch the value of their portfolios move up-and-down violently. Nevertheless, equity and futures markets experienced sizable moves. Historically, when the S&P 500 experienced a down year, the volatility index generally moved in opposite direction.
To find out more about systematic volatility trading models, please visit http://thewallstreetchallenger.com/Index/algorithms
The research included in this paper is provided for informational purposes only. It does not constitute a recommendation to invest in any specific investment product(s) or service(s). Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.
The Wall Street Challenger, LLC is a prominent organization for global investment research. It is dedicated to provide original, impactful economies views, markets forecast, strategies and analysis to identify investment opportunities.
Media Contact:
Gigel Marinescu, Founder & President
+1 (310) 780-8360
SOURCE The Wall Street Challenger, LLC
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