Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Building GenAI Applications. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Illusion of Volatility – Fear, Speed, and the VIX: How to Trade When Nothing Makes Sense

1 min read

When Markets Move Faster Than the Mind Can Think

April 2025: Markets are in a frenzy. The U.S.–China tariff war reignites. Investors panic. The S&P 500 E-mini Futures crash. Nifty Futures plunge and rebound. The US CBOE VIX spikes to 50+—territory reserved for financial crises.

But is this volatility real—or just an illusion created by emotion and speed?


Tariffs, Panic & Overreaction

It all kicked off with the U.S. imposing a 54% tariff on Chinese imports, igniting global uncertainty. China responded with equal aggression, and suddenly, markets priced in a full-blown trade war.

The U.S. markets cracked wide open. The S&P 500 Futures chart tells the story—steady bleed followed by a near freefall. But was there a collapse in earnings? A financial crisis? No. It was fear—pure and simple.


Nifty Futures: Reflex, Not Reversal

India’s Nifty Futures followed suit—dropping sharply, but bouncing back just as fast. Classic V-shape.

Is it a trend reversal? Not so fast.

In volatile markets, snapback rallies are common, but not always trustworthy. They’re emotional relief, not logical conclusions. And that’s where traders get trapped.


The VIX Doesn’t Lie, But It Doesn’t Predict Either

The VIX, Wall Street’s fear barometer, surged past 50. It’s loud, it’s scary, and it gets the headlines. But here’s the catch: high volatility doesn’t mean the trend is over—it just means the ride got bumpier.

High VIX doesn’t give direction—it gives permission to expect chaos.

US CBEO VIX – Fear Index

Stoploss Hell: When a Day Feels Like a Month

In this environment:

  • A week’s worth of price action happens in a single session.
  • Your well-planned stoploss gets hunted in minutes.
  • Breakouts reverse. Trends fake out.

This isn’t your usual market rhythm. It’s a game of survival and adaptability, not precision.


Calling the Bottom? Forget It.

Here’s a hard truth:
Trying to call the bottom or predict a trend reversal in such volatility is a trap. You might get it right once, but at what cost?

Instead, ride the short-term trend.
Whether it’s up or down, volatility rewards those who follow momentum—not those waiting for a perfect setup.

“The market doesn’t care about your prediction. It rewards participation.”

In this climate, it’s not about being the hero who called the bottom—
It’s about being the disciplined trader who rode the wave, survived the noise, and booked the profits.


Illusion vs. Reality

Volatility is not always risk. Often, it’s speed + emotion.

  • Markets seem broken, but fundamentals haven’t changed.
  • News cycles fuel fear, not facts.
  • Traders overreact, not because they’re wrong, but because they’re overwhelmed.

Don’t confuse market noise with opportunity. Stay nimble, stay humble.


Final Thought

This isn’t a time to prove your predictive genius.
This is a time to adapt, respond, and respect volatility.
There’s gold in the chaos—but only if you stop chasing certainty and start trading the trend.

Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Building GenAI Applications. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

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