Hi, there is a second article on this topic, giving a bit more information about how to setup the trade to increase the probability of profit https://tradingmatex.com/vxx-trading-based-on-fundamentals/
I think this strategy might works better in low vol environment. So you are taking the advantage of VIX reverting upward to historical mean as well as buying low IV on the VXX put wing.
Yeah I think it's the conclusion they draw in the article as well. Good conditions for the strategy are VIX below 20 and VIX/VXV below 1.1
Came across this post when searching a VXX strategy on Google and have few questions: is anyone is following it? Does the website also provide entry levels with actual strikes to buy/sell? With the recent developments around VXX, is this still the underlying to use or are people moving to VIXY (if so, any changes to the original strategy to be aware of)? Thanx!
FWIW: A new product began trading recently (UVIX & SVIX), which mimics the behavior of UVXY and SVXY respectively prior to their castration in early 2018! -- Liquidity in their options is currently poor, but likely to improve with time.
Hello, interested in the strategy published in the article but from what I understand it is based on VXX and VIXY rather than UVXY/SVXY. Not sure how do you suggest to change it to use these instruments instead?