Embracing volatility to reduce risk

How do we embrace volatility?

-We are deploying most of the time only 50% of the capital (according to VIX and CVI)  

-We constantly keep capital for each position to reduce costs basis.

-We take 50% profit at 50% of our target valuation and according to technical analysis fundamentals 

-We look to reduce/exit position when there is a lot of liquidity and increase/enter when there is none. 

-We are using leverage through derivatives only to protect our core positions by reducing beta-weighted deltas

-We deploy delta-neutral revenue strategies, yield farming and staking when it makes sense.

-Our "volatility traps": we create positive theta and decrease beta-weighted deltas by

•  Using options, futures, and futures options to create covered calls/synthetic covered calls.

•  Using options and futures of volatility traded products

In our experiments with the "volatility traps", we found that we can create, on average 1% return in cash per month on total position. That means that we can reduce the asset's cost over three years by 30%-50%. For example, if we bought a share at $5, after three years, the share cost will be $2.5-$3.5. We either reduced the risk of loss in %30-%50 or, on the flip side, created a 30%-50% return in cash with no change in the price.