Please comment on this simple volatility strategy

Check out this little book from www.tradingmarkets.com: "Connors Research Trading Strategy Series: Trading SPY with VIX and ConnorsRSI". It deals with the trading space you are referring to, and it is excellent, imo as a former student of Larry Connors.
 
when/if we get there u can pm me or post to whats best at that time..

personally i would setup a fly with a long vol bias when spot gets to your targets. you can earn full points on flies if your direction targets bang. for instance..buying 1 sept, selling 2 oct, buying 1 nov paid out at least 2 points in the last run (i don't have the data handy but probably more so from before the vol)

Very generous, thank you.
 
$100k starting capital. Wait till VIX goes back down to 12 and invest 100% into long Vix futures. Do not have a stop and leave the position running. Take profits when VIX hits 16. rinse and repeat.

Suppose the investor/trader is willing to suffer unlimited drawdown and the $100k is 10% of their liquid net worth.

Can anyone point out the risks/downside to this?

Thanks

the kid
I been buying VI for little over a year for long term futures. My long term on futures is original entry to always be going against main trends. My last trade will be the homerun trade but usually after many losses but I hedge, and except for rollovers for expenses. I never have trailing stops and have on occasion lost over $25k on positions that reversed before showing exit patterns, but I been using generally same method since 93/94. My longest trade so far has been 4.5 years in copper recently and reversed.

So what you planning on doing will work, I would never have no protective stops unless sugar gets down to 2 cents again. I use to think way you do, but have taken pretty good beatings without stops in the beginning, some markets can go sideways for years and you sitting with huge losses.
 
I been buying VI for little over a year for long term futures. My long term on futures is original entry to always be going against main trends. My last trade will be the homerun trade but usually after many losses but I hedge, and except for rollovers for expenses. I never have trailing stops and have on occasion lost over $25k on positions that reversed before showing exit patterns, but I been using generally same method since 93/94. My longest trade so far has been 4.5 years in copper recently and reversed.

So what you planning on doing will work, I would never have no protective stops unless sugar gets down to 2 cents again. I use to think way you do, but have taken pretty good beatings without stops in the beginning, some markets can go sideways for years and you sitting with huge losses.


wtf are you babbling about? A 5Y copper trade compared to a delimited volatility trade? Hint, VIX cannot trade more than 4 handles lower than his proposed entry. Tell us more about the time you short Red Eurodollars at 104.
 
wtf are you babbling about? A 5Y copper trade compared to a delimited volatility trade? Hint, VIX cannot trade more than 4 handles lower than his proposed entry. Tell us more about the time you short Red Eurodollars at 104.
So you rather buy at 12 and sit on it through years of it under 12? There you go when it gets back down there, you have a new hobby. And for your information, exchanges do change rules from time to time, at this time Eurodollars cannot go above 100.00
 
So you rather buy at 12 and sit on it through years of it under 12? There you go when it gets back down there, you have a new hobby. And for your information, exchanges do change rules from time to time, at this time Eurodollars cannot go above 100.00


wtf do exchange rules have to do with Eurodollars trading above 100? lol VIX has never spent more than six months at/below 12.
 
wtf do exchange rules have to do with Eurodollars trading above 100? lol VIX has never spent more than six months at/below 12.
It is possible that in the future, banks will charge you to put your money in their vaults and pay you zero interest, this may happen if we hit depression which is long over do, depressions have an 80 year cycle going back I remember since birth of Christ. So say we have to pay to store our savings, exchanges could raise limits of Eurodollar above 100.00. Given your age, when you were a babe Pork Bellies were a huge market to day trade at one time and then came T-Bills, Toby Crabel who now manages billion dollar hedge fund? started in T-Bill Pit after he gave up being Tennis Player on Pro circuit. So if we hit depression like the 1930s and S&Ps are down to 200, am guessing the VIX will go below 8, there be no volatility. LOL Just because you never seen it doesn't mean it won't happen, and VIX has not been trading a long time, like nine years, hell my coffee cup older than that. Exchanges for trading started in the 1600s across oceans, there been many changes since then.

Have a Good day trading Friday All.
 
$100k starting capital. Wait till VIX goes back down to 12 and invest 100% into long Vix futures. rinse and repeat.

the kid

Stop Thinking.
and ...just do it.

Time is money.
just_do_it.jpg
 
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