One strategy that I've seen on Leveraged ETF is shorting both the BULL and BEAR leveraged ETF to exploit the decay when volatility is high.

Though I am wondering how an entry signal is triggered for such a strategy since you basically want to enter in this double short when you expect volatility to be quite high.

My first thought was to compare 30 days realized vol to the 30days implied vol but the problem with that is that in general implied vol is higher than realized vol and hence don't really reflects future vol/ increase in vol.

So do you know common strategies to predict that future vol is going to be bigger than realized, so that the above strategy of shorting double leveraged etf works? (in the sense that the entry signals make sense)



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