The Volatility Control Fund Model is a strategy designed to manage portfolio risk by adjusting exposure based on volatility levels. This systematic approach goes long or short depending on the realized volatility of the SPX index, providing protection against market fluctuations.
The model uses triggers such as the Volatility Ratio (1-month vs. 3-month realized volatility) and a 10-day SMA for decision-making. Monitoring this strategy is crucial as it represents a significant portion of mutual funds and ETFs, influencing market liquidity and sentiment.
