Regular readers know that this is my bread and butter daytrade. While I do trade the PDQ signals and am quickly becoming a dedicated proponent of using VXX to forecast select ETFs and indices, the VIXEN trades are what keeps the lights on and the GE version is where I'm willing to buy some risk. When the GE VIXEN sets up (either long or short) I routinely trade the cross with a .08 stop (just my well tested stop loss for these trades).Over on the Schwab Trading Community site we'd been looking at GE S&R levels and I was looking for a break out at 15.47 back up to 16+ levels. We sure got that today with a whooping 185M shares in play.
The actual VIXEN cross on 2 minute bars occurred at 10:30 at $15.56 with the parabolics already in a bull mode and price riding the 8MA high line.
In an incredible juggernaut ride, GE then took off like an F-18 for the next 2 hours as volume continued to accelerate. We got a little .10 retracement at 12:30-12:45 before a revisit to the $16.45 high. At 13:00 the parabolics fire a SELL (cover), and with the double MACDs already downslope I quit the trade at $ 16:36 ( a shade below the midline of the MA8 hi/MA8 low channel).
The trade captured a nice $.80 gain in a little over 2 hours and is by far the best GE VIXEN of the last 12 months. In the past we've seen mostly dimes and quarters coming off these trades so I consider yesterday's pop a true gift. Thanks GE.
10 comments:
Have you run the VIXEN strategy against the SPY? OR tried it w/ S&P futures?
EX,
The VIXEN works well on the indices and a variety of ETFs including the Qs, QLD, GE etc. I like the GLD and GE VIXENs because of the beta and the fact that I trade options in sync with the cash positions to boost returns. I don't trade futures and the inherent low beta of SPY keeps me away from it. Maybe on the futures??
I have a couple friends who use it on the ER with good results. There are probably 40 or more VIXEN posts in my archives if you care to see some of the nuances of these trades.
Thanks for checking in.
Great- I'll check out the old posts, looks interesting. It looks difficult to backtest though due to the moving time periods. Do you exclusively use freestockcharts.com or is there a better charting site/program for VIXEN? I'd love to do some forward testing on S&P futures and see how it works.
EX,
You're right..the floating nature of the crosses makes it difficult to backtest.
The blog post is actually Schwab SSPro, the platform I use to trade with. The freestockcharts GE VIXEN on the blog right panel is just a bene for those who want to watch the action and don't have a platform capable of these views.
is there a compatable symbol in tradestation
Market,
Not sure of your question. With the VIX... just use VIX or VXX the ETN that trades like a stock. I use TS2000i with a telechart data feed and that uses VIX--X, you might also try $VIX, which is the format on many other platforms. My VIXEN traders in Vegas prefer the VXX, claiming it gives them a sleight edge. I suggest you try it both ways depending on what you're trading.
Market,
TS symbol for VIX is $VIX.X
thanks - I appreciate you finding it for me
Hi BZB,
VIX and GE are independent. The cross location depends on when you start charting/graphing. I new to your site and I obviously missing something on this.
sjg,
Yes..I'm well aware of that and have noted in at least 10 previous VIXEN posts the need to be aware of the floating dynamics.
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