Seeking Alpha

Allan Harris'  Instablog

Allan Harris
Send Message
Developer, Chief Strategist and Head Writer of AllanTrends.com, a trading service based upon a proprietary algorithm that identifies the dominant trend of any stock, index or ETF.
My company:
AllanTrends
My blog:
AllanTrends.com
  • Trading VXX  1 comment
    Jul 2, 2012 7:54 PM | about stocks: VXX

    A lot has been written about how VXX and UVXY aren't efficient ways to play volatility. I am at the opposite end of the spectrum as I find them to be great trading vehlcles for volatility or even directional signals for equity indexes. Between VXX, UVXY and XIV, there is enough liquidity and/or options to swing trade any of these very robust market measurements, whatever they may be tracking.

    There are a myriad of technical indicators that can be used to trade VXX. Moving averages, stochastic, Bollinger Bands, etc. Find the settings that suits your style of trading. I use an algorithm that is something of a cross between a Parabolic Stop & Reverse and an Average True Range trend line indicator using a trailing stop.

    Below are two examples of how VXX lends itself to trend following or swing trading in daily and then hourly price bars.

    (click to enlarge)

    (click to enlarge)

    Disclosure: I am short VXX.

Back To Allan Harris' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Allan Harris
    , contributor
    Comments (139) | Send Message
     
    Author’s reply » VXX ready to turn up: http://bit.ly/M05qXL
    4 Jul 2012, 09:09 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.