Trading the trend: up over 33% year-to-date with 2% risk per trade – short VIX
We would like to let you know that our hypothetical trades have so far gained over 33% year-to-date while risking 2% of capital per trade.
Today we would like to short the volatility index (VIX) with a stop loss at 20.40 and a downside target around 14.50.
(AI Video Summary)
Our profitable trading strategy
In this week's episode of "Trading the trend", Axel Rudolph discusses his successful trading strategy, highlighting a 33% profit gain this year by risking only 2% of capital per trade, thereby emphasising the efficacy of trading the market trends following with minimal risk. He provides updates on a currently profitable short position in soybeans, citing the decision was based on the resumption of a downtrend since last November.
This week's trading opportunity
His focus then shifts to the volatility index (VIX), noting its recent surge due to Middle Eastern tensions but pinpointing a potential reversal signaled by a dark cloud cover pattern. The recommendation is to short the VIX with with a stop loss at 20.40 and a downside target around 14.50. This tactical approach will allow traders to capitalise on observed market trends and volatility indicators.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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