>>20872765>but it spikes very rapidly and unpredictablyHow rapidly and unpredictably? XIV was already down around -50% and had been dropping since mid January before it finally dumped on February 8th, 2018. Pic related is SVXY which at the time was equally -1x short and had similar action to XIV. I use cash VIX ratios and Vix futures ratios to time my exits which would have triggered around January 28th, a full week and a half before volmageddon. Same thing for the Covid Vix spike. I would have been out at the end of January
>either you’re watching it 24/7 or you have stop losses set upYes, Vix spikes are rapid and violent but not such that there is no warning. It's a myth sensationalized by financial media that Vix spikes out of nowhere and goes up hundreds of percent instantly. It just doesn't do that. Not any more than e.g. SPX would dump over 33% in a day liquidating SPXL or any of the other 3x leveraged ETFs. That's not to say SVIX isn't a wild ride cuz it is. But no more a wild ride than TQQQ, FNGU, SOXL, and friends. I time SVIX such that when I'm in, it's the best place to be with the highest probability for returns. When it gets outside of that range, either up or down I'll move on to the next thing that has the highest returns respectively, either 3x leveraged equities or cash
