Invests a core position in highly-stable ETF's (or CEF's opportunistically), with a variable position in volatility ETFs. The allocation to volatility ETF's is determined using a proprietary, quantitative-driven method which encompasses multiple variables known to be predictive of the next-day % change in targeted volatility ETF's.

Fast Nickles is a long-only strategy to accommodate subscribers who want to use the strategy in their IRA and other accounts which will not allow short positions. Furthermore, Fast Nickles will not have an allocation greater than 75% of NAV committed to volatility (with the difference being either in cash or a "core", non-volatility-related ETF or CEF); and Fast Nickles will "shade" its volatility exposure depending on the model's overall score. Normal trading will have this strategy trading 5-10 times per month, with trades typically entered at the market open. Because buy and sell signals are normally tied to quantitative signals, and because the system will maintain open positions overnight, draw downs of 15% or more are possible. You may therefore wish to set your own stop loss limits. However, I have found from extensive back-testing that setting stop losses reduces ultimate gains.

To control downside risk without stop losses, we instead limit our exposures as noted above, and build into our model proprietary variables that are predictive of black-swan events. We also will go short volatility as well as long volatility in order to take advantage of market moves in either direction.

Important: we don't provide professional financial or investment advice specific to your situation; rather, we simply provide algorithmic (and in rare situations discretionary) trading signals for certain S&P 500 volatility (VIX) related exchange traded products based on proprietary analysis.