brian7683

How to trade UVXY - TVIX - VIX Volatility Futures

Education
brian7683 Updated   
AMEX:UVXY   ProShares Trust Ultra VIX Short Term Futures ETF
How to trade UVXY and other VIX volatility financial instruments

- Look at the 1h chart.
- Once the RSI crosses 30, wait 3 days for confirmation before buying UVXY.
- Monitor the markets.
- You want S&P500 to be overbought.

Conditions before buying UVXY:
- RSI has crossed 30 and is in a downward trend
- MACD descending gap is forming and widening
- Buy when the two lines cross on the MACD after the gap
- Increase in volume

Sell after 2-3 days

In the example on the chart, you missed out on 44% and 66% profit! You won't miss out next time all the conditions are met!

I hope you enjoy my trading guide and will test it in the future!
Let me know your results!
Comment:
Once the RSI crosses 30 on the 1-hour chart, the following 2-3 days should see the MACD trend continue downwards or be flat. If it starts to go higher, the conditions are invalidated.

If there's a major event happening like an epidemic and the markets will likely crash like from February to March 2020, these rules don't apply. During that period, the RSI never went below 50, so you would have missed out on big gains!
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