Registered: Feb 2010
08-24-12 04:47 AM
Quote from Robertwiz:
Why have Index futures been weak and choppy in the past few weeks compared to June and July which had some nice juicy 500 dollar moves several times a week?
It's very simple, put side by side charts of the VIX or VXX with the Index Futures to see the impact of key changes in volatility to explain the weak and choppy price movements in the Index Futures.
Still profitable but a little more difficult than June and July as you noted.
Also, take it a step further, put your profit/loss performance with the above charts to determine if you're method is sensitive or not to those changes in volatility. If so, you now have a great tool to help with your position size management to better manage the increased risk exposure when volatility is low.