Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and 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. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Why Trend Followers should care about India VIX

33 sec read

India VIX

Recently India VIX had returned from the peak volatility of 36 during 28th august down to sub 20 levels.Now very low volatility is prevailing in our Indian markets which generally indicates compressed markets.
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Why Trend Followers should pay attention to India VIX?

Trend followers, traditionally benefit from increasing volatility while other strategy player experience losses. History reveals movement from low volatility to higher volatility produces outsized trend following returns.

Movements in volatility and trend following performance are heavily correlated. Traders can use this insight to time entry, or to add money into Trend Following Strategy by looking at the volatility Index. High volatility periods offer opportunities to lighten up or decrease exposure in Trend Following strategies as movement from high to low volatility are times of losses for these types of strategies.

It is advisable to take Volatility as one of the parameters in your indicator to timing the entry for better yields.

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and 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. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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