Current Allocation
Allocation Breakdown
| Ticker | Allocation | ETF Name | Description |
|---|---|---|---|
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VIX Tier Reference
All five tiers and their normalized allocations. The active tier is highlighted based on the current live VIX reading.
| VIX Range / Fear Level | BIL | SPY | QQQ | TQQQ |
|---|
Strategy Summary
Core Philosophy & Mechanics
Core Thesis
The VIX is a mean-reverting fear gauge. When markets price in maximum fear, they historically precede the strongest recoveries. This strategy mechanically increases leverage exposure when fear is highest and reduces it during complacency.
The Four ETFs
BIL — SPDR Bloomberg 1–3 Month T-Bill ETF. Near-cash stability. Preserves capital in calm markets; reduced as crisis opportunity grows.
SPY — SPDR S&P 500 ETF. Broad market exposure. The steady core position across all tiers.
QQQ — Invesco Nasdaq-100 ETF. Growth and tech concentration. Increases meaningfully as VIX rises.
TQQQ — ProShares UltraPro QQQ 3× Leveraged ETF. Maximum recovery capture at peak fear. Highest risk, highest reward potential. Never exceeds 25% of the portfolio.
Rebalancing Rules
Rebalance monthly on the first trading day of each month. Additionally, rebalance immediately when the VIX crosses into a different tier — either up or down.
Time Horizon
Minimum 10 years. TQQQ's volatility decay requires extended compounding to overcome. This strategy is inappropriate for any capital needed within 5 years.
Risk Acknowledgment
This is not financial advice. For educational and informational purposes only. Past performance is not indicative of future results. TQQQ can lose 70–95% of its value in severe bear markets. Never invest more than you can afford to lose completely.