Discussions of conceptual & systematic development

Cramer article on Volatility products

3/1/2018

The unwinding and default of programs trading the volatility spread had a a very detrimental
effect on equity prices and indices on Feb. 5th. It affected our programs along with several
others in the space.

Jim Cramer voiced his opinion earlier this week regarding the situation.
Here is the article for your review.

https://www.cnbc.com/2018/02/26/cramer-remix-time-to-investigate-risky-vix-related-trading-products.html

Our updated exit logic with protective stops will be complete in the next couple of days.
We will post an explanation and more information soon.

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Risk Disclosure:
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Disclaimer: The principals of Optimized Trading understand regardless of the rigorous testing involving the development of systematic trading systems they are not infallible. Markets are dynamic and it may be necessary under special market conditions to intervene on the behalf of clients to protect their interests.

Cramer article on Volatility products

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