Additional Findings
The cumulative gain for the UVXY for the last three post-BSA 5-week periods was 433% vs. 54% for the SDS. The average cumulative gain from trading the UVXY for the past three posts BSA 5-week periods was 144.3% vs. 18% for the double leveraged SDS S&P 500 inverse ETF.
The gains in the above table for the SDS and UVXY do not include the recommendation for inverse VIX related SVXY shares for when profits were taken for the UVXY during the 5-week post BSA occurrence periods. Research is now being conducted on how shares of the SVXY fared during the 5-week post BSA occurrence periods. Based on a preliminary analysis of the SVXY, we believe that the gains for the 5-week periods could be significantly higher.
The table below depicts that the BBT’s short the market or RED alerts were much more useful for trading the UVXY than the S&P 500’s doubled leveraged SDS index ETF during the five weeks after a BSA occurrence. The UVXY had an alert win ratio of 88.8% vs. a win ratio of 77.7% for the SDS for the three 5-week post BSA periods.
The Chart
The chart of UVXY below depicts the potential leverage from trading the call options for VIX related securities. The spikes for the UVXY from its all-time lows, after the Bullish Sentiment Anomalies (BSA) occurrence since 2017, likely netted gains from 1,000% to 10,000% less than 60 days after the deployment of a disciplined call option trading strategy upon a BSA occurrence.
