HFT with VIX futures

[GordonTheGekko]

One strategy I'm working with is day trading VIX ETF's such as TVIX and XIV. On a very short term, intraday basis, the VIX moves perfectly inverse with the S&P tick-for-tick, but obviously with much more amplified movements, so it brings additional leverage.

I'm wondering if day trading the VIX futures as many as 300 times a day is plausible. The VIX ETF's and ETN's do not move very well with the VIX, so perhaps futures would be a more efficient method.

Thanks for your attention!

 

[jeb9999]

Did you bother to look to see what volume the VIX futures do?

HFT, LOL.

 

[GordonTheGekko]

300 trades isn't quite hft, so I thought itd be possible. What are your thoughts?

 

[newwurldmn]

You will have many more risks than just how the market is moving.

Liquidity is more likely to dry up (especially if you are short); but for a retail account probably okay. You will be paying more "in delta" than if you just traded ES futures.