Use fractals only during a trend, not during a consolidation, remember this is VIX strategy, I created this strategy according to how VIX behave, use fractals only to hold your trades not for entries, indicators will always be lagging. Usually the market moves up and down with maximum 7 H1 time frame candlesticks then reverse, count your H1 time frame candlesticks, most of the time the market reverse or retest after 4,5 or 6 H1 candlesticks, 7 is maximum,after 4, 5 or 6 H1 candlesticks at support or resistance level expect a reversal or retest in H1 time frame.
This is very accurate, that's how VIX behave. When the market is at support or resistance on our pillar H1 time frame, I wait for the market to reject at those zones, I then use M15 and M5 to enter my trades. These time frames react before bigger time frames, when I see that the market is at support in H1 time frame I wait for the current H1 candle to reject,even before it close I go to M15 and M5, they will show a Green candle even before H1 candle close, while it is still rejecting. I use these time frames to smell a reversal even before the H1 time frame show us a reversal, when H1 is forming a rejection at support, M15 or M5 is showing a W formation already, which is a reversal pattern, I then BUY when the market gives me a W, rejections and a Green candlestick in M15 or M5.
Every time when you login to your platform go to H1 our pillar, draw your support and resistance and trend lines, check whether the market is bullish or bearish. If the market is bullish count the number of H1 candlesticks the market went up with, wait for the market to approach resistance,to give you a green rejection candlestick, and as it is rejecting go to M15 and M5 to look for am M formation, when you see that formation and when you see a Red candle in M15 after several rejections you sell.
For safe entries Wait for the H1 candlestick to close as a rejection then wait for the following candle to change colour and shift the zone then execute your entries. While holding your sell orders, the market will retest, check the retest in H1 and usually the market will retest with 2 or 3 H1 candles, after that retest you sell again, after 4,5 or 6 bearish candles you know that the market will reverse any time soon, so you take your profit, then wait for the market to approach support. When the market is at support you wait for it to give you a Red H1 rejection candlestick, then a Green rejection candlestick and buy when you see green after 4,5, or 6 Red candlesticks, remember maximum is 7 H1 candlesticks.
When the market is consolidating we make more money as a range in VIX is very exiting to scalp. Most of the times during a range VIX go up and down with 2 to 3 candlesticks then bounce and reverse, in M15 that's 8 to 12 candlesticks, use this 2 to 3 candlesticks rule when you trade VIX during a ranging market. When you have enough capital open as many accounts as you want and do the same process in all of them, trade make profit and withdraw when you satisfied with your profit, I can teach you how to trade but I can't teach you how to handle your money.
Manage risk according to your risk reward ratio and risk what you can afford to lose.
Strategies To Trade Volatility Effectively With VIX
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Volatility Trading Strategies – Profit Without Forecasting Price Direction
Carousel Previous Carousel Next. Jump to Page. Search inside document. Here are some great H1 time frame tips: Usually the market moves up and down with maximum 7 H1 time frame candlesticks then reverse, count your H1 time frame candlesticks, most of the time the market reverse or retest after 4,5 or 6 H1 candlesticks, 7 is maximum,after 4, 5 or 6 H1 candlesticks at support or resistance level expect a reversal or retest in H1 time frame. Create your own risk management plan and stick to it. Wilder Mauricio Ussa Santana. Alister Mackinnon. Sthembiso Thusi.
Miner cand. Pauline Chaza. Yeisson Stiven. Zubair Sharif. Moses Tinyiko Shipalana.
Carla Banessa Jimenez Reyes. Options Finance I. A3R In times of extreme market moves, the VIX gets a bit more attention and possibly a little explanation. For almost a decade, this measure was a side note of market activity. Futures and then option contracts were developed by the CBOE to allow investors the ability to capitalize on an outlook for market volatility.
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These contracts witnessed steady growth until the second half of , when, with an explosion in implied volatility, the marketplace realized the benefits of volatility as a diversification tool. Other exchanges have taken notice of the success of VIX futures and options and have developed their own volatility indexes and derivative products. Volatility indexes and derivatives on gold, oil, currencies, and even soybeans are now calculated and traded by a variety of exchanges.
This book is divided into two sections.
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The first half of the book is a description and overview of the variety of volatility-related indexes and products currently available. The unique features of many of the derivative contracts are based on implied volatility, and these are touched on throughout the first section. The second half of this book is devoted to the uses of volatility-related indexes and products.
vix trading strategies pdf
Methods for speculating on the direction of the overall market or just volatility are addressed. Using volatility derivatives as a tool for hedging traditional portfolios is discussed. Also, the emergence of volatility indexes and trading products as forecasting tools is discussed. Volatility as an asset class and trading tool is a rapidly growing area in the markets. While writing this book, dozens of new indexes and derivative products based on implied volatility were introduced. Trying to keep up with all of them is nearly impossible, and if I'd tried, this book may never have made it to your hands.
Acknowledgments There are many people throughout my life who have allowed me to reach the point where I look forward to going to work and truly enjoy what I get to do professionally day in and day out. The primary person is my wife, Merribeth Rhoads. Her support and patience have been a key contribution to the completion of this book in a timely manner.
My daughters, Margaret and Emerson, are a constant inspiration to work hard and accomplish as much as I can to set a proper example for them. My first friend and little pal are the driving force behind all I do. My father, Richard Rhoads, has always been most supportive when I needed it and offered key pieces of advice at critical points in my career. Also, a special thanks to my Aunt Jean, who has been an excellent matriarch of the Rhoads clan for the past decade or so.
I would also like to thank Richard Smith and Margie Johnson, who decided what was best for me well before I could decide myself. Professionally, the staff of The Options Institute at the Chicago Board Options Exchange is probably the best group of people I have worked with in my life. The professionals at the brokerage firms I work with on a regular basis have allowed me to maintain a constant enthusiasm for my current position.
Finally, a portion of my job is focused on educating college students. Their enthusiasm for and interest in the financial markets rubs off on me.
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Also, for a second time around, Meg Freeborn and Kevin Commins of Wiley have been wonderful to work with. I hope to collaborate on more projects with them in the future.