Disclaimer: The information found on this site is meant for educational and informational purposes only. Nothing on this site should be construed as a recommendation or solicitation to buy or sell derivatives or securities or to trade any particular strategy. Trading of derivatives or securities has large potential risk and you must be aware of and accept all the risks. Past performance of any trading system or methodology is not necessarily indicative of future results. No representation is being made that any account will or is likely to achieve performance results similar to those discussed on this website. Hypothetical or simulated performance results have certain limitations and do not represent actual trading.

Sunday, February 26, 2012

FVE Indicators Snapshot & Performance Update

VIX & VIX Futures are at or near their "fair values" according to my FVE2 & FVEF Models.  Trading signals remain short.  The effectiveness of the original FVE tends to fade at values under 18, although I cannot say to what extent quantitatively.  FVE2 & FVEF were created to alleviate some of FVE's perceived shortcomings.  FVE remains an excellent model to be incorporated in various trading strategies.

Black Box Simulation is real-time, hypothetical results following trading rules preset during backtesting research.

Gray Box is real-time results of actual trades.  Three trading rules are utilized in the Gray Box system.  Discretion is used as to which one to follow, whether trades are to be executed intraday, and whether leverage is used.

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