IvanLabrie
Short

UCSGEARS' snapback application to Vix

INDEX:VIX   CBOE Volatility Index
I came up with this based on one of Tim West's publications from today.
It seems that this indicator produces some really high quality signals when applied to the Vix             itself, to trade S&P500             futures .
Check it out, maybe you can come up with other variations of this technique.
Seems like something I'd like to try asap             .
Good luck,
Ivan.
If you're interested in joining my trading newsletter or private lessons, message me. I trade Forex, Equities and Commodities. Contact: skype @ ivanlabrie, PM here or QQ (2954487803). KHL telegram group: https://t.me/joinchat/AAAAAAqHRWYvrLlfpF0StA
IvanLabrie PRO
a year ago
Made a mistake with the Average daily range figures, I used vix data...not S&P.
Either way, the trade signals seem to work.
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Algyros PRO IvanLabrie
a year ago
Thanks, Ivan. But, I'm a little confused about the ATR stop. To what should it be applied?
+1 Reply
IvanLabrie PRO Algyros
a year ago
Find the value of ATR(11) for the daily chart of S&P500. Use that as stop size.
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Killy_Mel
a year ago
so you are shorting the VIX or the SNP?)
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IvanLabrie PRO Killy_Mel
a year ago
Trading S&P using vix generated ucsgears snapback signals. That's what this chart proposes.
+1 Reply
claydoctor IvanLabrie
a year ago
Thanks Ivan. So if I read this right, the vix is a buy right now and sell the S&P, since we are atthe end of a snap back of the vix top previous levels, so we are headed up from here vix?
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IvanLabrie PRO claydoctor
a year ago
Trigger is one-two days post snapback signal. Now, vix a sell until NFP is what I think. And S&P, sideways or starting to move down soon.
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claydoctor IvanLabrie
a year ago
So, bottom line, 3:50PM today, you buying vix or selling and you buying S&P calls or puts? I am really sweating this decision, and wondering what you are going to do? There is such an opportunity to buy VXX call options for Sept 18th strike, because they are so cheap, and so opposite what the volume says. It could be huge score or greatest loss. That buys two weeks of trading, and if we get the big spike then, could be huge profit. But you have to buy now, even this morning, or they will cost 10X by after lunch time if the job numbers get leaked in that direction.
+1 Reply
IvanLabrie PRO claydoctor
a year ago
I only trade S&P500/Dax/DJIA, no options.
The vix is only a signal to trade S&P according to the snapback signal.
I think it's worth 1%, buying those vxx calls.
This fear we are experiencing, makes me want to double positions. (which I did...and now trailed stops)
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IvanLabrie PRO IvanLabrie
a year ago
Let's do the opposite of what the gut tells us :)
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claydoctor claydoctor
a year ago
I am concerned about china closed for this war memorial, and that creating this up days in S&P. Then being closed this weekend for 3 days entire world. Although I see massive after hours and pre market trading, still most trades are closed to you and me. VIX is very, very cheap right now, futures and vol markets thinking we go up in S&P from here, so your view is contrary (and mine). Jobs numbers tomorrow is huge, SO THE QUESTION IS, where to position today end of day trading, before stuff hist the fans tomorrow pre market, job numbers hitting at 8:30 am est? Could be the biggest trade of a life time, or not. Sept 8th, the big money comes back from the hamptons, summer over, china trading back online, fed speculation result of jobs numbers, tuesday wow, could be historic volumes day ever.
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Killy_Mel IvanLabrie
a year ago
I see...

hoever I must admit over last 5 years VIX has become too efficient - basically it only confirms the move after it happens

only advcie I can give is that it is a good idea to look for a short signal // risk event in media when vix trades belo 15 (too calm market, usually at the relevant highs)
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Algyros PRO
a year ago
Wouldn't this idea be good for trading volatility products such as XIV, SVXY, etc.?
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IvanLabrie PRO Algyros
a year ago
Probably, try it on a demo and post results here! (Tradingview offers said resource)
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Algyros PRO IvanLabrie
a year ago
I'll try. But to make your idea clear, you go long or short some S&P instrument and close the position when your ATR stop is hit, is that correct. And, is the ATR stop adjusted daily?
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IvanLabrie PRO Algyros
a year ago
You can trail under the daily low or close when profit exceeds 1 atr to make it risk free.
That part is up to you. It'd be ideal to have more than 1:1 r/r.
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IvanLabrie PRO
a year ago
Today Tim showed me an interesting technique related to the vix and vix futures, check out the key hidden levels chatroom for more info:
https://www.tradingview.com/chat/#c8BzrhGRvXxGXWnJ
It can greatly enhance this strategy's weak point: exits.
+1 Reply
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