Given the liquidity, will I get played, stopped out unneccessarily somehow by a rogue algo or something, on a long-dated short on the VIX futures, say six to eight months out?
Stop loss on VIX futures question
- Thread starter Kirribilli
- Start date
Short the obvious VIX and win a steady amount. Just do not be around when it spikes to a level that stops you out and refuses to let you exit the cookie jar without cookies. the VIX is at a low or thereabouts, how much is your target for the VIX? Seems to me that the money made there on the low is gone?
Understand but the far long end of the curve acts differently, no sharp spike just negative roll yield from backwardation. Hence is a spike blocking stop necessary and if so would it be hit by a trader in some weird scam.
Scams are for paranoids. if you think this is other than by the book you need to ask yourself why you are involved. You will never be an insider. You will always decide your fate by clicking your mouse. Is shorting something you should do with a product so close to the bottom? If so, load up. My experience is you'll win many trades until the big loss takes your margin. Hopefully, for your sake, my experience will not be yours. Wish you well.