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