GREY:BTTPF - Post by User
Comment by
redarTneJon Aug 27, 2015 6:32pm
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Post# 24057609
RE:RE:Experts predict HVI
RE:RE:Experts predict HVIYou can buy HVI and HVU and still lose everything on both. The problem is in the way these funds are structured and the inefficiancy evident in being too many levels removed from the underlying. Selling volatilty is a fine strategy but realise how many levels deep you are:
Vix Index -> Vix futures -> VXX(index fund) -> SVXY(inverse index) -> HVI(Currency hedged inverse index)
Shorting volatility due to the function of the rollover between contracts held in the VXX is just fine if you can handle the currency and short term risk. But the futher removed you go, the worse your going to do. So many middle men between VXX and HVI that have to get paid.....