What does the service cover?
When you FOLLOW the FUND™, you'll:
1) Receive a daily email and text message after the market closes that includes:
a. The market value of XIV
b. A suggested investment Trade for the next day's Market Open
2) Access to Roebuck Systems' daily Volatility Blog with:
a. Market updates
b. Malcolm Roebuck's insights into the current market
Could a subscriber use VXX puts as a proxy for the long XIV signals?
• You could use those puts but you probably know that is extremely volatile and the BUY signals would not exactly match FOLLOW the FUND due to us holding for longer periods of time.
Are you still maintaining the updates/information for your RS40/RS50 algorithms (It says last updated Nov 17)? Or you currently only provide follow the fund updates for subscribers?
• These are tests and not suitable for investing. They are updated to about 2 - 4 weeks in arrears. But your subscription will enable you to receive daily advice for the next day trade open.
Do you ever short the XIV?
• We never short XIV.
Do you ever trade the VIX?
• We never trade the VIX and you would have to trade VIX options or futures to do that.
What do you do if the XIV turn down for several months?
• If XIV goes down for several months our Algorithms would put us into Cash and would BUY back at a lower price. Note whenever XIV goes down a lot, it is like putting money in the bank because the VIX always eventually returns to its annual average value.
Do you give trade recommendations and if so, how often?
• Our subscription service gives you a daily trade suggestion for the next day. We send this daily via email for the next trade day. We average 2 or 3 trades per week.
Can I see past trade recommendations?
• Past trade recommendations can be seen on our "Follow the Fund" page located here: Follow the Fund
• Additional historical trade data can be found here: Historical Data
Have you back tested your algorithms and how far back have you gone?
• I started Algorithms over 6 years ago and have developed various versions going back to testing against the VIX itself to the early 90's. As you know XIV wasn't available before 2010 and UVXY in 2011. I started with XIV and UVXY about 3 years ago and was trying to stay 100% invested by switching direction. This doesn't work consistently due to various factors but I expect to get back to it. The reversals are key to success and all I can tell you is a general observation as we have back-tested. Surprise changes in direction have generally been overcome in approximately 3 to 4 times the length of the change.
First day getting the signal, and it gapped up at the open? What do I do in this case?
• Here is a section of our "Follow the Fund Instructions" concerning initial entry:
When you first join FTF, we may be suggesting a higher investment percentage than you are comfortable using for a new venture. In this case, you may want to gradually build your investment by placing a smaller Order every few days until you are at the level FTF is suggesting.
• Another thought:
It also depends on funds that you use. The VIX moves quickly and I would put 20% every 2 to 4 days on this type of investment but if it were IRA funds I might go 20% per week. I understand the problem when it gaps up but waiting for a gap down can sometimes be a long wait.