VIX SPIKE | Backtested Trading Results VIX TERM STRUCTURE

VIX SPIKE | Backtested Trading Results VIX TERM STRUCTURE

Vix Term Structure – includes backtested trade data using VIX Term Structure. Learn More About Vix Trading System.

When the VIX spikes the overall stock market should trade lower because there is more uncertainty that is built into the trade. Jonathan Rose and Pablo Lucena analyze the VIX term structure using:

  • VIX 9d
  • VIN
  • VIF
  • VIX3M
  • VIX6M
  • VIX1YR

When volatility trades lower the stock market should trade higher. We follow the various indices to determine strengths and weaknesses in the futures trading indices including:

  • /ES
  • /NQ
  • /RTY
  • /YM

The difference between the short term VIX and long term VIX- compared as VIN vs VIF is 1.0… what does this mean? Well, in this video Jonathan Rose, owner of Masters in Trading analyzes the Nasdaq and Russell Futures behavior when the VIX and VIF spiked.

Traders can learn about VIX Term Structure in videos on Masters in Trading Youtube Channel. At Masters in Trading, we teach relative value futures trading, also referred to as Pair Trading Futures. We teach how to trade futures including VIX term structure.

White Paper CBOE Volatility Index

Volatility as a tradable asset: VIX Futures & Options On March 24, 2004, Cboe introduced the first exchange-traded VIX futures contract on its new, all-electronic Cboe Futures ExchangeSM (CFE®). Two years later in February 2006, Cboe launched VIX options, the most successful new product in Cboe history. In 2015, combined trading activity in VIX options and futures grew to nearly 800,000 contracts per day. The negative correlation of volatility to stock market returns is well documented and suggests a diversification benefit to including volatility in an investment portfolio. VIX futures and options are designed to deliver pure volatility exposure in a single, efficient package. Cboe/CFE provides a continuous, liquid and transparent market for VIX products that are available to all investors from the smallest retail trader to the largest institutional money managers and hedge funds.


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