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Paul Cote wrote:
>
> Have any of you traded a volatility reversal system? How do you like it
> compared to targets? What I am seeing is that you have a higher
> percentage of profitable trades with targets, but you miss the trends.
> Also, with a reversal, you ought to have a few less trades than with
> targets, ie, less commissions and slippage. I would like feedback from
> people who have tried these types of systems.
>
> thanks,
>
> Paul Cote
Paul -
You only miss the trends if you don't filter your reversal trades with
other indicators. The reversal signals shown at my personal, *non
commercial*, web site use the VIX reversal signals as a fundamental
element in the generation of pivot signals. These are filtered by other
indicators which use EMAs and acceleration patterns. For example,
Friday produced a VIX reversal but did not generate a sell signal
because a consensus was not established with the other indicators.
This is, of course, my personal opinion and experience with the use of
implied volatility.
Ned Markson
cnedgo@xxxxxxxxx
http://www.erols.com/cnedgo
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