Wednesday, June 6, 2012

VIX Bollinger Band S&P 500 Mechanical System

$VIX - Chart Link - Here's a system that we've been using at BPT for the last few years, it involves using Bollinger Bands on the VIX.  The system gave a buy signal on June 4th on Monday, and clearly this has provided a nice bounce!  The system gives about 90% winning trades.  The rules are listed on the chart.  

The signal was triggered on Monday via a close of the VIX back inside the upper Bollinger Band.  Last Friday the VIX closed outside the Bollinger Band and was your trigger to watch for a close back inside the upper band to provide the trigger, which of course occurred on Monday.

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