etfmsolutions: Hey!..Wanta Buy Some Risk????...01.21.16

Thursday, January 21, 2016

Hey!..Wanta Buy Some Risk????...01.21.16

OK, seriously...DO NOT TRADE THESE SIGNALS. First of all VIX is an index so you can't....you have to trade the options or futures or ETN volatility derivatives like VXX.
That being said...here's the weekly bar chart of the VIX going back a few years and we can see that with yesterday;s pop to 32 the odds are favoring a turn down.
Just to see how that jibed with the M1 Prospector I ran the momentum and mean reversion modes and this is the current mean reversion profile. Note the hefty limit stop.. Not for the faint of heart.

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