[kffcc]

Are you sure about your numbers or did you only back-test your assumptions?

Scaling a trading strategy is quite difficult even with ETFs. If you trade futures which have a huge daily liability then it gets so much worse and options even worse. (Regarding back testing assumption to be filled and scaling).

If you can scale your strategy reliably then you wouldn't ask others to buy in. Any margin account is enough, except if you must outsource risks.

With IVRank and ImpliedVolatility% (I just use black sholes but compare it to your model) being at low bottom and a huge expected change of rho (interest free rate) which me and the markets seem to be unable to price.... what vehicles would you even use to monetize these events (Futures and options don't need to consider rho changes too much if traded in the vicinity if the VIX indicator how can you promise more)?

[kffcc]

To clarify I am asking in all honesty and positive reflection because I feel quite lost in this market.

[SirLJ]

Hello and thank you for taking the time.

This particular model I have been using exclusively since 2016 and earlier version since about 2009, everything is back tested as well back to 1928.

My experience with margin accounts is a bit different, using Interactive brokers, when the market goes down, they will sell part of your holdings (SPY for example) to maintain their Margin requirements, so I stay away from margin, worst is to get part of your portfolio liquidated close to the bottom… The other option is taking a credit, but with the interest rates today, also not a great option, also those 2 options are not available when investing with employer provided investing options…

I agree that the current interest rates are making Buy and Hold not very attractive, but still, I have to invest somewhere and my model is not about beating the market, but making it safer by moving in cash before the bottom and reducing the drown downs by 50%