VIX Trigger

VIX Trigger reacts to changes in the Volatility Index. A rising VIX signals fear and possible reversals in the underlying instrument. The strategy compares VIX direction with price relative to a moving average.

Testing indicates an average annual return of about 148%. It performs best in the forex market.

When VIX increases and price is below the moving average, it buys expecting a recovery. Conversely, rising VIX with price above the average invites a short position.

Positions close when VIX falls or the stop-loss percentage is reached.

Details

• Entry Criteria: VIX rising while price relative to MA triggers longs or shorts.
• Long/Short: Both directions.
• Exit Criteria: VIX falls or stop.
• Stops: Yes.
• Default Values:
  • MAPeriod = 20
  • StopLossPercent = 2.0m
  • CandleType = TimeSpan.FromMinutes(5)
• Filters:
  • Category: Contrarian
  • Direction: Both
  • Indicators: VIX, MA
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium