The CrystalBull Vixen™ for Trading VIX

This chart shows the daily closing values of our CrystalBull Vixen™.   The Vixen is trained to trade the VIX volatility index, which itself is extremely volatile.  Such volatility may make trading the VIX unsuitable for most investors.  Even in backtesting, this model had rather large drawdowns, making this strategy unsuited for more than a very small percentage of any portfolio.  See the Historical Performance of the CrystalBull Vixen™ Long/Short model, or download its CSV.

From Mar. 01, 2006 through Nov. 20, 2024, trading the CrystalBull Vixen Indicator Long/Short would have, hypothetically, produced a Total Return of 3e+19%, with an average compound annual total return of 758.15% APR   (The compound annual growth rate of the VIX during this period was just 2.14% APR).  The Indicator had 268 round turn trades over 18.7 years, and was in the market (exposed to market risk) 76% of the time.  It had a maximum drawdown during this period of 100.0%.

HOW TO USE: The yellow line in the bottom chart represents the CrystalBull Vixen™.  It is displayed in a standard technical analysis format, where a reading above +50 (red line) represents a possible negative trend reversal (investors seem unsustainably fearful, and the VIX may trend downward going forward), and a reading below -50 (green line) represents a possible favorable trend reversal (investors appear greedy or complacent, and the VIX may trend higher going forward).  The official readings are calculated after all the closing data are in for each day.  Trades are either executed in the after-hours market, or at the market open the following day.  The model assumes that the market open prices match the previous days' closing prices.  The model assumes trades are made directly in the VIX index.  In reality, a trade would need to be placed in a VIX derivative, such as in the futures or options market.  The Indicator chart draws a line from data point to data point.  Where that line crosses the green or red line is not relevant; Monitor only the data points along the line.

Click here to see the Historical Performance of the CrystalBull Vixen™ Long/Short model.