The VIX Thread: Discuss using VIX for long/short bias (June 2022)

KCalhoun

KCalhoun

Let's discuss using VIX for trade decision-making long/short bias

6/12 key VIX support @24. as long as it stays over that i have a bear bias

given recent drop in s&p I'd expect a higher VIX (32) than what we're seeing

ideas? thx


vix12jun.jpg
spy12jun.jpg
 
KCalhoun said:
VIX for trade decision-making long/short

key VIX support @24. as long as it stays over that i have a bear
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Using the VIX, or any other tool, for decision making is like assuming there will be people in a Highway Rest stopping zone...just because you saw a sign on the highway that said Rest Area ahead.
I mean, it's one variable, element, for consideration...but implementing that alone would only get you gambley, iffy, so and so trading results. If not complete losses.
What timezone, or timeframe, is this trade expected to be....a day trade, swing trade, monthly, yearly? You have to establish everything, and not just go along for the ride.
 
MacBookProHo said:
Using the VIX, or any other tool, for decision making is like assuming there will be people in a Highway Rest stopping zone...just because you saw a sign on the highway that said Rest Area ahead.
I mean, it's one variable, element, for consideration...but implementing that alone would only get you gambley, iffy, so and so trading results. If not complete losses.
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Right.... price action is all that matters. I use VIX as a bias indicator to help me decide position sizing, for example.

Like the spin on a golf ball, english on cue ball etc

Good point re it's one of several things to factor in .... the job of multivariate analysis in trading.
 
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One of my strategies for Futures, is following an instrument as an indicator.

Example: Using a micro NQ trade as an indicator/timing technique
to trade it's big brother mini NQ.

One of the reasons why I use multiple accounts.
 
KCalhoun said:
Right.... price action is all that matters.
I use VIX as a bias indicator
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Well, everything works and goes as planned and assumed...until it doesn't. And that's the key for a trader. To know, generally, all the expected movements and assumptions.

That's like blindfolding and deafening a person to cross to the other side of the land while tornadoes are happening, or while there's traffic happening. What are the probabilities that person will cross to the other side to a high degree successfully, not very likely.

When someone talks about the praises of an indicator...my mind sighs,
Indicator trading blinds and blocks the trader to all the other elements and variables and considerations in play, in the current dynamic environment of a trade.
 
what... is the idea here you enter a trade with MNQ and if it goes well you get on with NQ?
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Example:
1st Account: Buy 1 micro NQ at 11800
2nd Account: Sell 1 micro NQ at 11800

After price action hits 11800, you'll know
shortly whether to buy or sell on your
main account.

3rd Account for mini NQ (your main account)

With practice you'll determine best
stop loss for all accounts.
 
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excuse me, but what the fuck.
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LOL
The concept is very easy. You just need multiple accounts.
Preferably 3 accounts. Since you're only
buying 1 micro on accounts #1 and #2
your micro accounts can be very small ($5000 or less)

Be aware, only 1 of the micro accounts will
end in a loss. The winning account is used
as an indicator to buy or sell on your main
mini account.
 
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