Week in Review 7/16/21

In this video we look at the weeks trades ending on 7/16/21 and make some interesting observations involving the distribution levels and iceberg orders.

New Real Time VIX Template – Week in Review 7/6/21

In this video we look at the new VIX real time template and review 1 week of trades using ZoneTraderPro divergences and the VIX.  

The purpose of the ZoneTraderPro VIX BloodHound template is to determine the state of the VIX.  It is designed to determine trend and give high probability trade entries using divergences on the SPY.  Read more about that HERE.

There are 2 legacy files and each file has several templates to choose from. There a different file for the VIX and VIX9D.  A new template distributed in July 2021 is designed to be more robust and provide real time trading signals.  Test each of the templates and see what you like.

Here is why there are the two legacy files.  The VIX9D represents options expiring over the next 9 days.  That will also include options that are only being day traded.  The purpose of the template is to determine trend.  At the market open, there is no trend.  Keep that in mind.  It is extremely common to have options expire in the VIX9D, resulting in gaps on the open.

The VIX option template seam to preform better at the open than the VIX9D, because it is less susceptible to big movements because of options expiring the day before.  

The new real time VIX template is a more complex formula and uses the BloodHound histogram to determine the state of the VIX and the ES/NQ.  The newest file can be used to trade the NASDAQ.  It is looking at the NASDAQ VIX as part of the formula.  

Click HERE for that strategy page.

 

VIX and VIX9D Examples

Vix Example
Vix Example at the Open

Here is the ES chart with the VIX template on the open.  The VIX chart is used at the open because it is less sensitive to options that may have expired the day before.

Vix9d Example
VIX9D Example During Trading Day

Here is the SPY chart with the VIX9D template.  The VIX9D can be used once the day has started.   It may provide a clearer picture of the volatility because options positions are being initiated and traded that may be expiring in a short period of time. 

ES Example

Here is the ES chart with the VIX9D legacy template.  Here is what is interesting.  Notice how in a 3-4 point pullback, that the indicator doesn’t flip.  That could be important.

Using the new template we can better determine the state of the VIX by reading the BloodHound histogram at the bottom of the chart.  Refer to the video at the top of this page.

Installation

If you are an existing ZoneTraderPro customer 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 a ZIP file containing the BloodHound templates.  You can also download the BloodHound templates below.

Download the VIX Files

Right Click and Save As the zip file containing the BloodHound Templates.

These files are placed in this location when they are unzipped.

NOTE:  The new file has not been uploaded to the ZIP file yet.  Expect this on 7/12/21.  When this note disappears, the file will be updated and a blog post made containing the link.

bhlocation
import

The next files are the SharkIndicators BloodHound template files.  You need to place these in the BloodHound folder once they are unzipped.  

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 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 $65
  • CBOE Indexes    $7
  • NYSE Non-Pro Exchange Fee     $7
  • GLOBEX COMBO Level I Non-Pro for $5
  • If you plan on trading the NQ, you will need Nasdaq Level 1 – $7
kinetick
NOTE:  GLOBEX COMBO can only be added AFTER you have signed up for Kinetick. The link for that is found here, or found on Kinetick website Help Menu
 
Choose the All 4 Level 1 Globex option for $5.

Very Important

You must connect to Kinetick first when you start NinjaTrader. After starting NinjaTrader, you need to make sure you have no preferred connections under TOOLS-OPTIONS-MARKET DATA.

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 09-21 (or currect) to ES ##-##

ES # Symbol

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 4 symbols

  1. VIX9D
  2. VVIX
  3. VXX
  4. VXN
instruments

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

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

VXX

Name the master instrument VXX 

The instrument type is STOCK 

You need to put the name of the exchange.  Put DEFAULT

You need to put the TRADING HOURS.  Put US EQUITIES ETH

You need to tell Kinetick where to find it.  VXX

VXN

Name the master instrument VXN 

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.  VXN.XO

Instrument

Add these symbols to the Instrument List

Go to TOOLS and choose INSTRUMENT LISTS

  1. VIX9D is placed in INDEXES
  2. VVIX is placed in INDEXES
  3. VXX is placed in SP500
  4. VXN is placed in INDEXES
Instrument List

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 VXN.

Click SP500 and then ADD. You will receive a popup and then start typing VXX. When the symbol comes up, click it and add it to the list.

indexes

Monitoring VIX9D

I keep both a 3 minute VIX9D and 3 minute chart of the VIX 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 purpose of this template is to determine trends identified using the VIX.  This is not an indicator that calls tops or bottoms.  The way it is designed, it WILL NOT call tops or bottoms.

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.

The VIX option templates seam to preform better at the open than the VIX9D, because it is less susceptible to big movements because of options expiring the day before.  There is a significant amount of options that are day traded on expiration day.  So this creates a skew at the open.

New BloodHound VIX Template

In this video we go over the new template available for Bloodhound user of ZoneTraderPro.

NinjaTrader Instrument Manager for Vix Setup

In this video we look at adding the VIX9D symbol to NinjaTrader and setup of the BloodHound Charts

Real Time VIX BloodHound Templates

In this video we look at the Real Time VIX BloodHound templates and a very special offer for new customers of ZoneTraderPro.

This is an older video.  The newest video about real time templates is at the top of this page.