DVB Through the Crisis

I've been out of action trading wise for the last month. I got married at the start of the month and enjoyed an active yet refreshing honeymoon in Peru for 3 weeks (We're not beach people!).

Even in the Peruvian Andes I couldn't fail to miss the headlines from Greece and the ensuing market volatility.

It looked good time for Mean Reversion type strategies which is typical when you're aware from your screen. So I was keen to find out how a basic DVB strategy would have fared recently.

The basic strategy is to go long on a reading below 0.5 and short on a reading above 0.5.

Here's how things have panned out recently using this method on the SPY (S&P 500 ETF).

Not too shabby based on a rather simplistic eyeballing of the charts.