? I though it was pretty self explanatory by viewing the chart.
Whenever the VVIX is below 110 and crosses up above 110, that's a
warning sign. I don't think one should trigger a trade off that and
should use other charts for your triggers and confirmations.
However even if one one started scaling into some index hedges
whenever that VVIX crossed up over 110, looks like you would have
done well most of the time. Even though sometimes it triggers 2 or
3 days earlier, seems to be pretty good at occurring before some
kind of pullback/correction. Sometimes those pullbacks are
small like in Dec and early Jan and the one in Aug only produced a
1 day pullback, and sometimes they are larger like Mar, June, Sept
(which was 3 days early), and this last one.
As far as exiting you don't get exit signals from this, exit by
your other charts and triggers. The VVIX is simply a tool that
triggers an early warning that a pullback may be about to occur and
to start looking at some hedges.
Posted by fredsaid on 23rd of Feb 2021 at 02:15 pm
Worked beautifully ! Like you said, sometimes it's the day
of and other times it's early. I took that to mean could be
up to 3 weeks and it worked. Thank you !
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
The VOMMA played out
Posted by matt on 23rd of Feb 2021 at 09:49 am
$VVIX - Chart Link- was early by 2 or 3 days but was good early warning
how do you interpret this
Posted by arun on 23rd of Feb 2021 at 01:40 pm
how do you interpret this matt ? i never used this chart before
? I though it was
Posted by matt on 23rd of Feb 2021 at 01:47 pm
? I though it was pretty self explanatory by viewing the chart. Whenever the VVIX is below 110 and crosses up above 110, that's a warning sign. I don't think one should trigger a trade off that and should use other charts for your triggers and confirmations. However even if one one started scaling into some index hedges whenever that VVIX crossed up over 110, looks like you would have done well most of the time. Even though sometimes it triggers 2 or 3 days earlier, seems to be pretty good at occurring before some kind of pullback/correction. Sometimes those pullbacks are small like in Dec and early Jan and the one in Aug only produced a 1 day pullback, and sometimes they are larger like Mar, June, Sept (which was 3 days early), and this last one.
As far as exiting you don't get exit signals from this, exit by your other charts and triggers. The VVIX is simply a tool that triggers an early warning that a pullback may be about to occur and to start looking at some hedges.
Worked beautifully ! Like you
Posted by fredsaid on 23rd of Feb 2021 at 02:15 pm
Worked beautifully ! Like you said, sometimes it's the day of and other times it's early. I took that to mean could be up to 3 weeks and it worked. Thank you !