Until recently, most professional traders used volatility as a method to hedge a portfolio. Those days are long over and individual traders are now trading volatility directly as a separate asset class.
Trading volatility directly has skyrocketed in popularity recently, especially in the #1 most-traded volatility instrument – the highly liquid ETN VXX. Currently over 40 million shares of VXX are traded on a daily basis. VXX was one of the first volatility products on the market we have spent extensive time researching and developing this new strategy guidebook focused solely on trading VXX.
Through 3 ½ years of quantified historical test results we’ve seen the substantial potential that trading VXX can offer active traders. The VXX Trend Following Strategy is a fully quantified guidebook designed to give you multiple variations of the strategy in order to tailor it to fit your personal trading goals.
One of the focal points of this guidebook is portfolio management, and we provide several sample portfolios in order to help you structure and manage your own purpose-built portfolio for trading VXX.
We’ve boiled down 4 core rules that you give you the ability to form multiple high-performing and fully quantified trading strategies on both the long and short side. As VXX has tended to exhibit a negative bias, we’ve also concentrated specifically on short side strategies in order to take advantage of this trait.
As with all of the guidebooks in the Connors Research Trading Strategies Series, complete instructions are provided for applying both entry and exit filters in order to gain the most out of your trades, as well as how to identify and execute volatility trading opportunities on a regular basis.
If you want to become a more powerful trader and secure greater returns from your trades using quantified rule-based strategies, The VXX Trend Following Strategy is right for you.