New BloodHound VIX Template
In this video we go over the new template available for Bloodhound user of ZoneTraderPro.
Installation and Use of the Indicator
There are two templates to choose from. Template V1 is a faster template. It is more likely to flip from red to green faster than V2. V2 is intended as a longer term trend template.
Placing the V1 template on the ES chart and the V2 template on the SPY chart has worked well for me. However, try both and see what you like.
Below are a couple of examples of trading with V2 direction on the SPY chart.
ES Example
Here is the ES chart with the V1 template. Here is what is interesting. Notice how in a 3-4 point pullback, that the indicator doesn’t flip. That could be important.
Installation
I will send you two files in Skype. One file is a license checker which is installed using the NinjaTrader Control Panel.
The second file is the SharkIndicators template file. You need to RIGHT CLICK and SAVE AS and place it in the BloodHound folder.
The picture on the right shows that path.
Kinetick
The data we need for this template to work is not provided by NinjaTrader Continuum. You are going to need get a data feed. I recommend and use Kinetick.
Click the image and you will be taken to Kinetick. When you get to the site and sign up, you are going to need to sign up for 2 data options.
- CBOE Indexes $7
- NYSE Non-Pro Exchange Fee $7
I also have the GLOBEX COMBO Level I Non-Pro for $5, but this is for futures data I believe.
Adding the VIX Symbol
The template is using the VIX9D symbol. This is what SpotGamma uses because it represents the VIX options that will expire in the next 9 days. SpotGamma believes it is more of a leading indicator than the regular $VIX symbol. Go to Instruments and ADD.
You must name the master instrument VIX9D
You need to put the name of the exchange. Put CBOE.
You need to tell Kinetick where to find it. VIX9D.XO
In order to use this we need to use the instrument manager to add it as a symbol. Create a new instrument list and name it anything you want. Then add the VIX9D to the instrument list.
Monitoring VIX9D
I keep both a 1 minute and 5 minute chart of the VIX9D on my desktop. It really doesn’t have to be much bigger than the picture on the right. As VIX falls, as in the example, long trades are favored and short trades are not.
I keep it hovering over the left side of a bigger chart to save space. Toggling the ALWAYS ON TOP property will keep it always visible.
As VIX rises, as in the example, long trades are going to be more difficult and short trades are favored.
Using The Template at the Open
The templates become more difficult to use on the open and you MUST monitor the 1 and 5 minutes charts.
Because options may have expired at the previous close, the VIX9D may open away from the close and have a gap up or gap down.
In this example, we had a bearish gap up, and the 5 minute bar continued to rise. Had it been falling, your decisions are more difficult and likely long trades may have been favored and working.
Chris it’s looking hot mate and will give you another call soon for a catch up!