Why Is The Obvious Not So Obvious?
- Thread starter nysestocks
- Start date
Okay. So how would that look? You mentioned rangy days are better for you? And trendy, not so much? What does the VIX look like on rangy days? How would you apply it?
When we see wide moves in both directions, it probably means it has been a period of higher than average levels of uncertainty. And, when the market is trending the volatility is lower because the participants feel more confident about the direction.
I hear that volatility tends to cluster. I'm not sure if I interpret it correctly. It looks like if we are witnessing something happening then it probably last for a while, but we can never be sure for how long it's going to last.
Patiently wait for the right conditions to trade?
I'm the guy that looks for trend days and I think it was rocky that wants range days. Regardless to answer your question, my knowledge of vix is that over a certain number on it tends to be considered high volatility. I am not sure about it's actual intraday price structure. I don't know if just simply being over x number would create the right conditions or if it needs to be in an uptrend. That I will have to investigate.
Yes, and tying volatility to underlying fundamental drivers is correct. I would caution and say that trending environments can - and often - do occur in a high VIX environment. 2008. This past August. Volatility clusters because it's largely news-driven. Crisis don't manifest or resolve themselves overnight. When the market finally sits up and takes notice, politicians and CB'ers must act. Given the plodding nature of humans and bureaucracy, solutions take time. This is why volatility tends to "cluster", or continue.
As for the VIX... Is there a correlation between it and your trading performance? For example, during low-VIX periods, is your trading a net loss? And when the VIX is high, it's a net gain?
Good idea... Come back and let us know....There should be a correlation between your PnL and the VIX range (high or low). Correlate the days where the VIX is high, medium or low with your performance during those same periods and let us know the result.
we are really gathering momentum now..and i see we have some new flatmates
time to step back and look at the blank canvas..so as to speak
why does one person look at a painting and see the VALUE in it..when others will look and just see more of the same old thing..some stupid artist throwing more paint onto a canvas to impress others with his views on certain aspects of life..what the hell can anyone see in paintings..anyway
when u look..into the book
what u see..is what it be
if u stare..what is not there
soon u know..u miss the show
price will move..into the groove
when it's in..time to grin
but know this fact..it is no act
too many gloat..and miss the boat
so u say..this and that day
all i need do..is trade like YOU
but when i try..to reach the sky
i always find..i'm trading blind
if u are blind..then u must find
the reason why..u have no eye
for now u know..it's all a show
to win u must..learn to adjust
NY did speak..of one so bleek
a hump so big..it was no twig
ding dinga dong ..a merry song
it's now the time..to SEE the chime
so let us think..what in the ink
to look and see..be bizzy bee
and when u look..into the book
know for sure..there's but this cure
for any mind..with simple hind
can look and see..what need to be
the need is there..and never care
to lose so small..will make it tall
time to step back and look at the blank canvas..so as to speak
why does one person look at a painting and see the VALUE in it..when others will look and just see more of the same old thing..some stupid artist throwing more paint onto a canvas to impress others with his views on certain aspects of life..what the hell can anyone see in paintings..anyway
when u look..into the book
what u see..is what it be
if u stare..what is not there
soon u know..u miss the show
price will move..into the groove
when it's in..time to grin
but know this fact..it is no act
too many gloat..and miss the boat
so u say..this and that day
all i need do..is trade like YOU
but when i try..to reach the sky
i always find..i'm trading blind
if u are blind..then u must find
the reason why..u have no eye
for now u know..it's all a show
to win u must..learn to adjust
NY did speak..of one so bleek
a hump so big..it was no twig
ding dinga dong ..a merry song
it's now the time..to SEE the chime
so let us think..what in the ink
to look and see..be bizzy bee
and when u look..into the book
know for sure..there's but this cure
for any mind..with simple hind
can look and see..what need to be
the need is there..and never care
to lose so small..will make it tall
directly...NO
indirectly..YES
Why Is The Obvious Not So Obvious?
The Obvious Is Not So Obvious..because...It Is So Obvious
when u work this out u will never look to any other trader for guidance..for..u will have arrived and will KNOW what it is all about
u will only KNOW when you have learned the difference between saying and doing..for..the bizzy bee is not called bizzy for nothing
TO
Achilles, honestly, I have never used VIX as a tool for the analysis of my performance, but when I see wide moves in both directions I also see more signals and because the ranges are wider I have more successful trades. CounterTrend and With Trend trades work more often.
Do you imply that I must specialize more? You said that it's going to be the process of elimination. I must admit that the elimination process is the reason there's no consistency in my performance. This particular thread has always been the hope for me that my search will be over and I will be able to do same thing day after day after day.
so let us see..what diff there be
for one so blue..is not best clue
as u can see..there many be
in and out..with no real clout
we do not care..what others dare
all we need know..where is best show
to find out same..and have no shame
we use PC..to see what be
the sectors be..like grape on tree
but thanks to Bill..we now have skill
to find so fast..never in the past
like mighty Thor..roar the ADR
for one so blue..is not best clue
as u can see..there many be
in and out..with no real clout
we do not care..what others dare
all we need know..where is best show
to find out same..and have no shame
we use PC..to see what be
the sectors be..like grape on tree
but thanks to Bill..we now have skill
to find so fast..never in the past
like mighty Thor..roar the ADR