The Volatility Index (VIX) is used by traders to determine when the stock market (S&P) is getting "too risky", so they can protect their trading accounts from losses.

Could traders be using the VIX wrong?

Is there an even better way to time the markets and reduce risk?

In this episode, discover the new secrets of volatility-based trading with Rob Hanna. Rob shares his award-winning insights into using the VIX and SPX to time the market, challenging conventional wisdom and uncovering new strategies for volatility trading. Whether you're an advanced trader or just looking to refine your approach, this podcast is packed with valuable tips and actionable advice.

Some of the key points you'll discover:

Why conventional wisdom using VIX for market timing could be all wrong,
Does VIX movement really predict market moves or is there a better way,
The surprising signal source that can be more effective than VIX signals,
The best indicators for predicting short-term market movements,
Practical strategies for trading VIX instruments,
How quicker VIX recovery can be leveraged to reduce the length of drawdowns,
Plus a simple VIX model that uses SPX movements to time the market (the opposite of what most traders do), and much more!

Next Steps:
Read Rob's research paper: https://papers.ssrn.com/sol3/papers.c...
Follow Rob on @QuantifiablEdgs or https://quantifiableedges.com
Check out the VIX trading course with a special discount (for a limited time): https://bettersystemtrader.com/vix
Subscribe for more expert trading tips and interviews!

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0:00 Introduction
1:25 Rob's Trading Background
4:21 Inspiration for the Paper
5:55 Basics of the VIX
7:19 Conventional Wisdom on the VIX
12:15 Behavioral Perspective of the VIX
16:14 Bear Markets and VIX
18:02 Interaction Between SPX and VIX
19:58 Long-Term vs Short-Term Indicators
23:04 Short-Term Trading Insights
30:01 Trading VIX Instruments
37:20 VIX Futures and ETFs
42:02 SPX Signals for VIX Trading
47:22 Assessing Strategy Robustness
55:01 Key Takeaways and Summary


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Disclaimer:
Trading in the financial markets involves a substantial risk of loss. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice.