You cannot predict when volatility will spike but volatility is mean reverting so after a spike sell uvxy short. Uvxy is a double long etp so has to pay the vix futures contango twice. It is designed to decline. Seth Golden has made $12m doing this. All the links to the strategy are on this thread https://www.elitetrader.com/et/thre...gauge-proliferates.312670/page-2#post-4511802
What benefit is predicting volatility?
- Thread starter pursuit
- Start date
This works for as long as there is persistent contango. Which is in a bull market.
Good poem/post....uhhh....just a little, unimportant thing called...Money,
The most valuable commodity I know of...is information.
You either have a trading edge, or you might as well step on the ledge.
No one can 100% Predict the Future. -- but you can atleast manage it, and/or go and flow with it,
Bend the variables or whatever expectations of the game slightly in your favor, if you can,
Would that help you to know, pursuit-nickname, that QQQ has plenty, plenty of 2% down-moves in a bear market?? Dont know if that would help you 2% moves=[ minus 2% in a 30 minute candlechart/bear market ]; helps me, but not a prediction.
Hint; QQQ has not lately , but it could ,have plenty of 2% daily up moves in a bull market, which is what we are in now; even if SEPTember QQQ goes down?? Good question
this is the VIX...
Are you a Seth Golden fan-boy? You should have his face as wallpaper
He is telling you something that works and has written extensively about it if you follow the links. This is very rare.
"Worked"
Thanks , also found this .
VIX-Linked Products Make It Possible to Gain Directly From VIX Movements
There are several options to trade the VIX. The simplest approach is to buy Exchange Traded Notes (ETN) or Exchange Traded Funds (ETF) on the index.
The largest vehicle is the iPath S&P 500 VIX Short-Term Futures ETN (VXX - Get Report) . This product holds long positions in the first and second month futures contracts on the VIX. Hence, if markets are insecure and volatility goes up, the product gains in value.
So it seems quite easy to take positions on volatility without need for slightly more complex option positions
VIX-Linked Products Make It Possible to Gain Directly From VIX Movements
There are several options to trade the VIX. The simplest approach is to buy Exchange Traded Notes (ETN) or Exchange Traded Funds (ETF) on the index.
The largest vehicle is the iPath S&P 500 VIX Short-Term Futures ETN (VXX - Get Report) . This product holds long positions in the first and second month futures contracts on the VIX. Hence, if markets are insecure and volatility goes up, the product gains in value.
So it seems quite easy to take positions on volatility without need for slightly more complex option positions
When you listen to the news, you are seeking to predict volatility.
So, "What benefit is there to listening to the news?"
So, "What benefit is there to listening to the news?"