I don't think I've ever seen anything like it. Those that are REALLY good traders are making a frackin killing. Newbies are getting slaughtered. Above average traders (like myself) are staying out. I've watched ATLEAST 5 10 point swings on the S&P so far.
Averaging Down without the full backing of the US treasury is probably not a wise play when VIX > 40. Trend Trailing - Reversal Systems will do well as long as your able to stay on the right side of the price curve. Some nice runs to capture... Stay inside your range or wait untill RTH's if your running anything involving options to hedge. The options are going to spread wide and stay that way for a while. October 2008 had some wild daily swings. You were afraid to go piss when you had a sizeable position in play.