RobertB 5 Report post Posted June 25, 2012 Kim, Can you please explain how you use the various volatility indexes in making your trading decisions. And why you might use one volatility index instead of another. I've noticed you refer at times to these volatility index levels when deciding whether to enter or exit a trade. What are you looking for generically with these indexes? Are you looking for absolute index values or relative percentage index values? Or perhaps momentum? Share this post Link to post Share on other sites
Kim 7,421 Report post Posted June 26, 2012 I simply try to put the odds in my favor. If VIX is low, it is usually a good time to place a calendar. How low? Below 18-20 is probably good enough. It doesn't mean it cannot go any lower, but it probably won't go much lower. For RUT, I'm looking at RVX which is same for RUT/IWM as VIX for SPY/SPX. RVX at 30+ is considered high enough, below 25 probably not so good. Again, it doesn't mean it won't go higher but.. Of course this approach means that at some periods, you will have to wait long time before you can place a trade. Share this post Link to post Share on other sites
