What is VIX Plus?
VIX Plus is an institutional-grade trading methodology designed to generate maximum revenue with minimum risk as quickly, easily, and consistently as possible. It answers the question:
"What, if anything, should I trade today - and how?"
The system integrates the following components:
- A volatility aware decision framework
- A next-generation trade analyzer
- A high win-rate automated exit strategy
What should you trade?
SPX is the ticker symbol for the S&P 500 Index. It is the instrument recommended for this trading methodology, for the following reasons:
- Cash-Settled (No Assignment Risk)
- European Style
- Huge Liquidity + Tight Spreads
- Fantastic for Income Strategies
- ODTE Availability
- Tax Advantages (US Section 1256)
XSP is available for smaller portfolios. It is a "Mini-SPX" with the following features:
- 1/10th SPX Size
- Still Cash-Settled
- Still European Style
- Still 1256 Tax Advantaged
- Much Friendlier Size
VIX Plus utilizes one of the following option strategies:
- Iron Condors (ICs) - Neutral
- Credit or Debit Spreads - Directional
The following strategies are available for larger portfolios:
- Covered Calls (CCs) - Bearish
- Cash Secured Puts (CSPs) - Bullish
When should you trade?
These steps are designed to optimize success by:
- Trading only when conditions are favorable
- Matching the right strategy to the current regime
- Avoiding high-risk environments that destroy option sellers
- Producing consistent income with controlled drawdowns
The key philosophies for this strategy are:
- Volatility matters more than direction
- Issues of structure are more than indicators
- Risk management matters more than entries
- Consistency beats activity
- Avoiding bad trades is alpha
STEP 1 - VIX Regime (Strategy Selection)
This step serves as the master switch, enabling or disabling entire classes of strategies:
- <13 - no trading
- 13-16 - Light CSPs, light CCs
- 16-20 - CCs, CSPs, ICs
- 20> - no trading
STEP 2 - Trend Regime (Directional Risk Bias)
This step determines which side of the market is structurally safer by using 50 and 200 day moving averages:
- 50 SMA > 200 SMA - Bullish (CSPs)
- 50 SMA < 200 SMA - Bearish (CCs)
- 50 SMA Cluster - Neutral (ICs)
STEP 3 - Market Structure (Balanced vs Breakout)
This step determines if the market is stable by using the weekly Expected Move (EM) and daily Volume Profile indicators. The market is balanced if:
- Implied Volatility Range - inside EM
- Volume Profile - inside VAH/VAL area
- Point-of-Control - near POC balance
- Average True Range (ATR) - flat trend
- Volume Compression - squeeze ON
STEP 4 - Event Risk Filter (Binary Risk Removal)