The V model is based on Technical Analysis (TA) of Volatility indexes as VVIX and VIX

the proprietary algorithm works on daily level of V an VIX and computes an indicator, updated on daily basis. Its outputs are:

• a binary indicator (can be positive or negative)

• a "barometer" showing how fare we are from the inversion point

V barometer

based on VVIX / VIX ratio

Using the V indicator as a trading strategy, backtested investment would use the following rules:

• If V barometer is positive, then go Aggressive Long (= BUY $QQQ or $TQQQ)

• Else, stay CASH

And would give the following performances (2011-2025):

V model - no leverage ($QQQ):

• CAGR: 11.42%

• Max drawdown (MDD): -14.8% (2025)

Note that the V model has similar returns, but much lower drawdowns, as the benchmark ($SPY), which during same period made:

• CAGR: 13.09%

• Max drawdown (MDD): -33.9% (2020)

V model - 3x leverage ($TQQQ):

• CAGR: 32.72%

• Max drawdown (MDD): -40.4% (2025)

The levered version can magnify returns, at the price of increased drawdowns