|
PureBytes Links
Trading Reference Links
|
FYI, from Connor's new (third) book, "Connors on Advanced Trading
Strategies"... the strategy is all here, and on the website it shows a
"16-day profit"... I have *not* looked at or tested the strategy long term,
this in only presented here for information (not endorsement). The details
and charts of recent results are at http://www.mgordonpub.com
Mike C.
= = = = = = = = = = = = = = = = = = = = = = = = =
> In sixteen trading days the trading strategy realized
> Stock Traders 665 Dow points,
> Futures Traders 90 S&P points,
> Option Traders 43 OEX points.
>
> =================================================
>
> This particular trading methodology is based on the Chicago
> Board Options Exchage's Volatility Index(VIX). The VIX is carried
> on all end-of-day and real-time services.
>
> Larry has figured out how to dynamically measure change in the
> VIX to anticipate market movement. Does it work? The proof is
> in the pudding - 665 DOW points in 16 trading days.
>
> This VIX Reversal is just one of three in *one* chapter (Chapter 2)
> of a 31-chapter book.
>
> Here are the rules:
>
> 1. Take a 5-period RSI of the closing VIX.
>
> 2. When the 5-period RSI gets to 70 or above, it signifies the
> VIX is overbought and the market is oversold.
>
> 3. When an RSI reading above 70 is followed by a downtick in RSI,
> buy the market that day on the close.
>
> Short entry:
> When the 5-period RSI of the VIX gets to 30 or below, it signifies
> that the VIX is oversold and the market is overbought. When an RSI
> reading below 30 is followed by an uptick in its RSI,
> sell the market that day on the close.
>
> 4. Exit seven trading days later (or use some type of trailing stop.)
>
> 5. A protective stop helps avoid potentially large drawdowns.
>
> (The widest stop used by traders in this methodology is 2% of the
> underlying index. With the DOW at 8000, the stop is 160 points.)
|