Volatility Model - (Beta) Model moves to CASH/NEUTRAL on December 17, 2015

Published : December 17 2015 at 12:17 ET

The model has moved to CASH. This means to sell any volatility-related ETFs you may have bought. The market is still relatively noisy even after the Fed meeting. It is best to keep to smaller losses as the fail-safe will be placed between 1-2% on this type of situation, instead of today's 3%+ loss as testing has shown with respect to profitable vs unprofitable periods. Too small a loss causes more whipsaws. Too great a loss increases risk. Striking the right balance between risk/reward has been a mission of this beta testing phase. We are nearly there. 

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