The purpose of the ZoneTraderPro VIX BloodHound template is to determine the state of the VIX. It is designed to determine trend and give trade entries using divergences on the SPY. The SPY is used as a proxy for the VIX because more divergences are created on SPY, and it is common to have divergences on both. Read more about that HERE.
The real time VIX template is looking at both price charts and VIX charts to generate a BloodHound signal. In this way, we can easily determine the state of the VIX and if it favors our trading signals on the SPY divergence.
The question that is asked a lot is, are we trading SPY or the ES? We are using the SPY divergence signals as a proxy for trading the ES. We can also use divergence signals on the ES contract and a combination of both.
The newest real time VIX template is a more complex formula and uses the BloodHound histogram to determine the state of the VIX and the ES.
Click HERE for that strategy page.
VIX Template Examples
In the charts above and below, there are red and green lines on the bottom indicator panel. I drew these in to denote where the VIX is indicating short and where it went long. There were also real time SPY divergences, both long and short, being indicated on the price charts. An opposing divergence signal can be used as an exit, as they are telling you in real time, you may be subject to a reversal.
As the morning continued on, the system continues to take trades in the direction of the VIX. You see a BloodHound red/green racing stripe on the charts when 5 of the 6 charts are in agreement. This can be used to prevent early entries. These charts are from 1/03/22 and this is a very important point. These charts are ONLY illustrating market direction and why it is a valid trading idea to be trading with the VIX. Not every divergence signal you see on these charts are valid trades. This is only meant to illustrate the power of the ZoneTraderPro VIX templates.
The videos at the bottom of this page represent the full concept of trading with ES and SPY divergence.
Step 1 - Installation of the License Checker
If you are an existing ZoneTraderPro customer and are upgrading to the BloodHound version, I will send you the files in Skype. This file is a license checker which is installed using the NinjaTrader Control Panel. If you are a new customer I will install this for you during setup.
Step 2 - Download the VIX Files
The files are the SharkIndicators BloodHound template files.
The picture on the below shows that path.
NOTE: The most current Live Vix file was updated 9/17/2023. It is now Version 13.
ZTP BloodHound Version 13 Right Click and Save AS
Step 3 - Download Templates
Before you do anything else, go to the NinjaTrader8 chart templates folder and DELETE any old SPY template. There is a specific SPY divergence and KP2 Ratio indicator that old templates did not use.
Download the Template Files
Right Click and Save As the SPY template
Right Click and Save As the $ADD template
Right Click and Save As the ES 3.5 point chart template
Right Click and Save As the ES 7.5 point chart template
These templates were updated 9/17/23
Download the Vix HIGH Vol template HERE.
Download the Vix LOW Vol template HERE.
Step 4 - Setup Kinetick
Setting up Kinetick is normally done at the end of training. This is because it is not necessary until you start working with the VIX, so it is an unnessary expense when starting to learn ZoneTraderPro.
The data we need for this template to work is not provided by NinjaTrader Continuum. You are going to need an additional data feed. I recommend and use Kinetick.
Click the Kinetick image and you will be taken to Kinetick. When you get to the site and sign up, you are going to need to need the following options.
- Basic Service $75
- CBOE Indexes $7.50
- NYSE Non-Pro Exchange Fee $7
- GLOBEX COMBO Level I Non-Pro for $5
You sign up for GLOBEX after you have a Kinetick account. This is necessary because the 1st connection you make when NinjaTrader starts, is what fills the charts. This is why you need the live GLOBEX data from Kinetick.
Very Important
You must connect to Kinetick first when you start NinjaTrader. After starting NinjaTrader, you need to make sure you start Kinetick when NinjaTrader starts. Go to CONNECTIONS and under the KINETICK configuration, tell it to connect on startup.
Then you need to tell NinjaTrader to add the symbol ES ##-##. You only do this one time. Start a reguler ES chart and change the symbol from ES 09-23 (or currect) to ES ##-##
Always connect to Kinetick 1st when starting NinjaTrader
Adding The Necessary Symbols - VERY IMPORTANT
Go the TOOLS Menu and choose INSTRUMENTS and click ADD
You are going to add 5 symbols
- VIX9D
- VIX1D
- VVIX
- UVXY
- COR90D
VIX9D
Name the master instrument VIX9D
The instrument type is INDEX
You need to put the name of the exchange. Put CBOE.
You need to tell Kinetick where to find it. VIX9D.XO
VIX1D
Name the master instrument VIX1D
The instrument type is INDEX
You need to put the name of the exchange. Put CBOE.
You need to tell Kinetick where to find it. VIX1D.XO
VVIX
Name the master instrument VVIX
The instrument type is INDEX
You need to put the name of the exchange. Put CBOE.
You need to tell Kinetick where to find it. VVIX.XO
UVXY
Name the master instrument UVXY
The instrument type is STOCK
You need to put the name of the exchange. DEFAULT
You need to tell it the trading hours. US EQUITIES ETH
You need to tell Kinetick where to find it. UVXY
COR90D
Name the master instrument COR90D
The instrument type is INDEX
You need to put the name of the exchange. PUT CBOE
You need to tell it the trading hours. US EQUITIES ETH
You need to tell Kinetick where to find it. COR90D.XO
Add these symbols to the Instrument List
Go to TOOLS and choose INSTRUMENT LISTS
- VIX9D is placed in INDEXES
- VIX1D is placed in INDEXES
- VVIX is placed in INDEXES
- COR90D is placed in INDEXES
- UVXY is placed in SP500
Click INDEXES and then ADD. You will receive a popup and then start typing VIX9D. When the symbol comes up, click it and add it to the list. Do the same thing for VVIX and VIX1D.
Click SP500 and then ADD. You will receive a popup and then start typing UVXY. When the symbol comes up, click it and add it to the list.
The biggest source of user errors comes from adding an index as a stock. You will get a blank chart if this happens. To verify that you correctly added the symbol as an index, click on TOOLS-INSTRUMENTS and type in VIX1D and see if says stock or index in te description. Delete it if it says stock. Repeat this for the VIX9D and VVIX.
NinjaTrader Instrument Manager for Vix Setup
In this video we look at adding the VIX9D symbol to NinjaTrader and setup of the BloodHound Charts
