Volatility in the US indexes

Discussion in 'Trading' started by myminitrading, Dec 1, 2006.

  1. This happens when we approach the end of the futures contracts, the big swings are used to unwind futures positions with out tanking the markets.

    Roll over will take place in a couple of weeks.
  2. rosy2


    can you provide any data/papers/proof to confirm or negate what you wrote?
  3. Just years of observation.
  4. Let me try this again sorry... More vix, more range, easier trading....
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  5. "More vix, more range, easier trading"

    again, an extrapolation from your personal trading style to the aggregate.

    PERSONALLY, i find a low vix environment EASIER to trade (in re index futures) because I scalp and my preferred setups work best in low volatility markets.

    of course, when we have high volatility days, the key is to recognize that and adjust to use more of the setups that are geared for higher volatility days.

    but if people think higher volatility is easier to trade, that shows that they just have a style of trading that is not adaptable. and if your trading isn't adaptable, it will fail in many market environments

    it's like the difference between soybeans and corn. i prefer corn. corn is smooth and (for my setups) more predictalbe, but it is FAR FAR less volatile than soybeans

    if you prefer volatility, clearly your choice is soy

    but the idea that volatility is "easier to trade" assumes that all traders have methodologies and setups that capitalize on volatility and that is simply not true

    i am the first to admit that while i have some setups that capitalize on more volatile markets, many of my setups are geared for low volatility markets, and i find low volatility markets much easier to trade
  6. dac8555


    makes sense to me.
  7. the more the volatility the more the ranges....the more the size u can use...the more the money, especially in stocks.
  8. Thats what I'm getting at. My highest months are directly correlated to the vix. The size and number of trades increase for me personally, but everyone is different.
  9. well, ask uself why traders became millionaires in the late 90s, i mean that was champagne sluts and angel dust all along..as rm says...and why...maybe cuz vix was at 50? ror. i mean, would u rather prefer to trade 200points ym ranges or 30points..of course if u are a sclaper after a few ticks a day it may not make any difference but hell u can seriously capitalize on high vola.
  10. again, it depends on methodology.

    if u can't recognize that, then that would explain why many fail to capitalize on changing market structure

    it reminds me of all the people who are complaining there has been no volatility, when soybeans have been off da hook for volatility

    if you NEED to trade volatility, then go where the volatility is. otherwise, adapt to the market you are trading
    #10     Dec 1, 2006