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Trading Strategy for Portfolio Optimization
When trading S&P 100 stocks, prioritize the top-performing stocks to fill the portfolio efficiently. Focus on trading the most volatile or least volatile stocks based on preference. Trading VIX instruments can provide a significant edge if done cautiously by managing risks and finding genuine trading advantages. Consider whether the S&P is overbought or oversold to predict VIX movements over the next few days. Futures are the simplest VIX instrument to trade, but analyze all risks involved in trading VIX instruments. VIX trading has proven to be profitable and preferred by the speaker, who trades VIX futures, options, and ETNs for different reasons.