SPX- Using Vix to Find Entries

The VIX can help you in finding good trading signals. In this edge, we use the VIX to find favourable entries! 

Edge Details

Market:

S&P 500

Security:

SPX

Access Level:

Silver

Profit Factor: 1.99

Avg. Trade: $8.19

Units: 1

Win Percent: 72%

Trades: 180

A Closer Look

The VIX is a volatility index that can be used to find good entries. That’s what we do in this edge

The edge is composed of:

  1. A Trend Filter
  2. A Moving Average Filter
  3. An RSI Entry
  4. An RSI Exit

1. A Trend Filter

The first filter is a trend filter, so that we trade only when the trend is favouring our entry!

2. A Moving Average Filter

The second filter is a plain, moving average filter.

3. An RSI Entry

The RSI is used for the entry.

4. An RSI Exit

To exit the trade, we will use RSI  to determine when the market has made its swing, and the odds are no longer in our favour

Vix and S&P 500

Vix and S&P 500

Logic

Below the rules of this very edge are defined for you to replicate in your own testing;

[am4show have=’p15;p17;’ guest_error=’Silver Member’ ]

  1. Today’s close should be lower than yesterday.
  2. VIX should close at the highest in 15 days.
  3. The 2 day RSI indicator should be lower than 20
  4. Buy at the close if the above conditions are true
  5. Exit: If the 2 day RSI is above 70 then exit next bar at open

[/am4show]