I love the use of EDV to short SPY. I didn't realize there was an ETF that goes -0.97 beta and also has dividends. Seems like that is highly preferable to actually shorting the market with an inverse ETF. Now if there was -2.0 beta that also paid dividends...
This strategy does well in recent history but poorly if you start at 2013 instead of 2015. In contrast, my incomplete VIX bot, which only shorts the VIX for now, gets 170% over that same timeframe. From 2015 onward to yesterday, this bot does better and also has an impressive lack of drawdown, although examining the buy/sell actions, I find it mostly goes SPY or EDV and seems to day trade XIV a lot with there just being a position that it held for a day and then lost money.
Also, I will point out, sending 100% of the money you were going to use to short the vix into XIV the moment the VIX hits 27 or higher is a bad idea. In a real crash, the VIX will likely go beyond 27 for many many days or weeks on end, with XIV getting depleted to just a fraction of its original value in that timeframe, assuming it doesn't hit their 90% in a day threshold where they will disband the ETF. Inverse ETFs are dangerous because of this.
Realize that crap ETFs like UVXY do actually have a circumstance where it makes obscene amounts of money, but with regulators ready to step in the moment the market starts to weaken seems like we may not see that anytime soon.
I would like to see someone figure out a strategy that examines the different VIX etfs out there and profits off of the lag and tracking errors some of them have. We have SVXY/XIV, UVXY/TVIX, VXX/VIXY but also VMIN and VMAX (approx 1.2x leverage, but don't market buy early morning) and then the hand cranked VXUP and VXDN, which, after seeing how badly UVXY was tracking and how quickly it lost value after the brexit, actually seem even more appealing as a way of longing the VIX.