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.
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.
- 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