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237: New Volatility Based Trading Techniques with Rob Hanna

Better System Trader

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Factors to Consider When Applying VIX Trading Strategy

When applying a VIX trading strategy, it's crucial to consider factors such as VIX term structure, risk management, and position sizing. Traders need to incorporate risk management techniques, avoid over-leveraging, and be prepared to withstand drawdowns. The focus should be on developing a robust model by assessing consistency over time, rather than relying on a single metric like edge ratio. Experimenting with the strategy under various conditions and measurements can help determine its robustness and effectiveness.

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