Volatility

Our mission is to expose ourselves to harmless volatility, the kind others try to protect against, to generate returns while protecting against permanent losses. Essentially we believe that the market is under-pricing volatility, and we try to profit from that, while at the same time staying well diversified.

Getting in and out

Our approach allows for setting "out of market" and "back in" levels ahead of time and have them be triggered automatically without the need for additional judgement calls. The primary benefit of this approach is not the "getting out" part, which is only triggered in extreme cases, but rather the "getting back in" part. Studies show investors who get out of the market tend to get back into the market far too late following a correction or crash.

Liquidity

The approach allows for reasonable short term withdrawals without penalizing returns in the long term. We stay highly liquid in our portfolios. Most reasonable withdrawals can be made without affecting long term returns. No need for a rainy day cash fund.

Absolute Protection

Our approach protects portfolios from extreme market drops and caps the amount of loss that is possible in any given year. The approach cannot prevent the loss of money during a market crash but it caps that loss at an absolute amount. This is very effective because the aftermath of a market crash is usually the best time to invest.

Risk Control

If you play with the Leverage drop down above you can see how you can easily change your risk level and therefore return by simply adjusting the amount of leverage you take. Keep in mind that the actual investment never changes even though the results change dramatically.