( HINT: Click-and-drag left-to-right on a chart to zoom in to a specific date range. Double-click on a chart to zoom back out. )
The CrystalBull Vixen™ History Chart. Trading the VIX volatility indexThis chart shows the backtested readings of the current CrystalBull Vixen™ model, along with the hypothetical returns that would have been obtained had this model been followed during this time period. The CrystalBull Vixen™ uses proprietary modeling of the CBOE's VIX volatility index (often called the "Fear Index"). It seeks to sell VIX short in unsustainably-high periods of fear, and buy VIX during periods of unsustainably-high greed or complacency.
CAUTION! This chart is shown using logarithmic format, which is the only way such outsized returns can be shown sensibly. But, beware that log format hides some rather large drawdowns. The returns here are insane and strain credibility, but this strategy comes at high-risk. The VIX is extremely volatile, so large drawdowns can occur if on the wrong side of a trade. Therefore, only a very small percentage of any portfolio should be used to follow this model.
While the indicator may look like noise, if you zoom in (click-and-drag left-to-right across the data range you want to see), it will make more sense. It is an active indicator which can change intraday, and this chart has years of data.
From Mar. 01, 2006 through Mar. 30, 2023, trading the CrystalBull Vixen Indicator Long/Short would have, hypothetically, produced a Total Return of 6.7e+18%, with an average compound annual total return of 866.89% APR (The compound annual growth rate of the VIX during this period was just 2.97% APR). The Indicator had 248 round turn trades over 17.1 years, and was in the market (exposed to market risk) 76% of the time. It had a maximum drawdown during this period of 82.82%.
HOW TO USE: The yellow line in the bottom chart represents the CrystalBull Vixen™. It is displayed in a standard technical analysis format, where a reading above +50 (red line) represents a possible negative trend reversal (investors seem unsustainably fearful, and the VIX may trend downward going forward), and a reading below -50 (green line) represents a possible favorable trend reversal (investors appear greedy or complacent, and the VIX may trend higher going forward). The official readings are calculated after all the closing data are in for each day. Trades are either executed in the after-hours market, or at the market open the following day. The model assumes that the market open prices match the previous days' closing prices. The model assumes trades are made directly in the VIX index. In reality, a trade would need to be placed in a VIX derivative, such as in the futures or options market. The Indicator chart draws a line from data point to data point. Where that line crosses the green or red line is not relevant; Monitor only the data points along the line.