Matt & Steve, question about the VIX-based SPX trade: How do
you go about setting profit targets? And have you looked at how
long the short trades (shorting SPY) tend to last?
remember there's no one answer there. The VIX Bollinger Band
system is like a haff system i.e. it gives the trade signa entry
but not the exit - so for exits you just have to use your standard
charts, patterns, trendlines etc
On the 12 Volatility systems I have, they of cours ehave exits
which are based on a close above a short term MA like the 5 SMA or
8 SMA and a few other things
Thanks Steve & Matt. I know it's not a full system, hence
the questions. Not looking for hard-and-fast answers, just some
good sense ideas you would favor. Appreciate both your answers,
they're helpful.
I simply trade the trend until evidence (structure) changes -
VIX closes below the lower BB are extremely rare so no stats on my
end. Follow the instrument you are trading and tune out
indicators and follow your plan. Examine the SPX 30 minute
below - lower lows and lower highs - cover some into extreme levels
like yesterday and then reposition upon failure is one option to
reduce risk.
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Matt & Steve, question about
Posted by frtaylor on 7th of Sep 2023 at 02:44 pm
Matt & Steve, question about the VIX-based SPX trade: How do you go about setting profit targets? And have you looked at how long the short trades (shorting SPY) tend to last?
remember there's no one answer
Posted by matt on 7th of Sep 2023 at 02:48 pm
remember there's no one answer there. The VIX Bollinger Band system is like a haff system i.e. it gives the trade signa entry but not the exit - so for exits you just have to use your standard charts, patterns, trendlines etc
On the 12 Volatility systems I have, they of cours ehave exits which are based on a close above a short term MA like the 5 SMA or 8 SMA and a few other things
Thanks Steve & Matt. I
Posted by frtaylor on 7th of Sep 2023 at 03:04 pm
Thanks Steve & Matt. I know it's not a full system, hence the questions. Not looking for hard-and-fast answers, just some good sense ideas you would favor. Appreciate both your answers, they're helpful.
I simply trade the trend
Posted by steve on 7th of Sep 2023 at 02:47 pm
I simply trade the trend until evidence (structure) changes - VIX closes below the lower BB are extremely rare so no stats on my end. Follow the instrument you are trading and tune out indicators and follow your plan. Examine the SPX 30 minute below - lower lows and lower highs - cover some into extreme levels like yesterday and then reposition upon failure is one option to reduce risk.