Isolate VXX decay with leveraged SPY funds
When shorting VXX you often are trying to profit on decay, independent of small price swings. Pairing each shorted VXX share with 2 shares of SDS (Short SPY, leveraged) produces a position that is short on the volatility (short VXX) but partially hedged for price movements.
WARNING: a short VXX position exposes you to VXX spikes that can result in portfolio destruction, margin calls and the boogie man coming to visit you. Hedging with SDS will soften the blow somewhat but keep position sizes SMALL - drops of %10-%20 are routine.
Use an RSI (or equivalent) to time entry/exit and position size.
WARNING: a short VXX position exposes you to VXX spikes that can result in portfolio destruction, margin calls and the boogie man coming to visit you. Hedging with SDS will soften the blow somewhat but keep position sizes SMALL - drops of %10-%20 are routine.
Use an RSI (or equivalent) to time entry/exit and position size.
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