We are living in days of high #Vix with added volatility & movement in our favorite indices
There have been strange opens & very quick movements some to profits, others to losses
There is always a message in the data. Data speaks
Let's explore what Vix wants to tell us
Vix is at 25- 30 currently.
Is this Normal?
Data from 2010 suggests this as an outlier
A vix above 30 has been trading less than 55 times in 3000 sessions!
It's a 1.83%
For those who are new to trading , this is a TIME Profile of the VIX from March 2020.
The mode is seen at 18-20 and anything above the red line of 25 is 2nd standard deviation territory for the markets and a change in Vix regime.
Translation - Vix from March 2020 is telling us that if we stay above 1 standard deviation of 25 and continue to do things which you did at mode of 18-20 , you will not get the same results
In other words, if you are making losses, relook at your trading strategies and change.
But this "adjustment" is for the short term only as I mentioned before this Vix event is an outlier .
To cut losses, CHANGE your methods for short term.
