First thing I must warn is that you shouldn't believe everything you read on this forum without checking (at least you shouldn't believe what I say LOL.)
Because I wanted to repost the chart showing Fund results if following VIX strategy, I redid the data and turns out I made an error in the Fund prices.
I'm uploading a new chart that shows that my VIX strategy taken alone without any other strategy doesn't do better than if you would have held the I Fund for the entire year. (I've only included I fund because of size restrictions on the attachment.)
In the data sheet attached, it shows I fund results since January at 21.6% (see bottom row) if you would have held the Ifund long except for those periods when the VIX went above it's 200 day average. I fund results holding long since January without any break, at least according to tspmoney's website at http://www.tspmoney.com/prev/index(2).php shows 23.8%
But I think the point is still well taken about the VIX, if you look at the chart. The VIX is VERY important if you want to avoid following the market DOWN and then back up no matter what (and if you accompany this strategy with a better strategy to use the rest of the time rather than just holding long.)
Guess that is what this forum is for, evaluating whether an indicator is worth using or not. Your choice. But for example today, because of the chart, I have a pretty good idea that the major pullback everyone is expecting will not happen tomorrow because of the lower right hand corner, too far down below the 200 day VIX for right now IMO.
Also, still need to evaluate this for a longer time period.
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