Alpha strategy may move to cash soon
It’s been over nine months since the current XIV buy signal was generated on January 23. Looks like that trade may finally be ending soon as VIX futures remain in a state of weak contango.
This has been a bumper year for the strategy so far with returns over 100% (over 150% at some points recently). My only complaint is having to sit in XIV during the pullback of the second quarter. That was painful, but the pain was quickly forgotten as the strategy made significant new highs.
Of course the real test of a strategy is how it does during the tough times. I’m curious to see how the Alpha strategy behaves during the next bear market in stocks.