Uploaded May 2024 | Updated September 2026, 5 hours ago
Using VIX to time the S&P? Rob Hanna's award-winning research shows you have the relationship backwards.
► Full article: bettersystemtrader.com/new-volatility-based-trading-techniques-with-rob-hanna
In this episode:
• Why S&P readings predict next-day moves better than VIX readings do
• How long-term VIX indicators actually hurt performance vs buy-and-hold
• The contango headwind that makes long volatility a structural loser 86% of the time
0:00 Introduction
4:21 Why traders use VIX and how conventional wisdom developed
7:19 What VIX actually measures and the Rule of 16
12:15 Behavioral perspective: implied vs realized volatility
16:14 Bear markets and why VIX doesn't always spike
19:58 Long-term VIX indicators: why they fail
23:04 Short-term finding: SPX times itself better than VIX does
30:01 Practical VIX trading instruments (futures, options, ETFs)
37:20 Contango drag and the structural headwind for long VIX
42:02 Using SPX signals to trade VIX instruments
47:22 Robustness testing and VIX recovery speed
55:01 Key takeaways
Related episodes:
• A new approach to trading volatility with Rob Hanna: youtu.be/Kv1y7KHgYEg
• Forecasting a volatility tsunami with Andrew Thrasher: youtu.be/mT0z2vkR3N8
Rob Hanna runs Quantifiable Edges and has managed capital full-time since 2001. His 2024 NAMA Founders Award paper compared SPX and VIX as short-term timing indicators across RSI periods of 2, 3, and 4 and multi-day high/low lookbacks of 5, 10, 15, and 20 days. Full paper at SSRN abstract ID 4808230. VIX trading course at bettersystemtrader.com/vix.
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► Better System Trader: bettersystemtrader.com
► Follow on X: twitter.com/bettersystrader
#VIXTrading #SystemTrading #AlgoTrading
Disclaimer:
Trading in the financial markets involves a substantial risk of loss. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice.
---
Using VIX to time the S&P? Rob Hanna's award-winning research shows you have the relationship backwards.
► Full article: bettersystemtrader.com/new-volatility-based-trading-techniques-with-rob-hanna
In this episode:
• Why S&P readings predict next-day moves better than VIX readings do
• How long-term VIX indicators actually hurt performance vs buy-and-hold
• The contango headwind that makes long volatility a structural loser 86% of the time
0:00 Introduction
4:21 Why traders use VIX and how conventional wisdom developed
7:19 What VIX actually measures and the Rule of 16
12:15 Behavioral perspective: implied vs realized volatility
16:14 Bear markets and why VIX doesn't always spike
19:58 Long-term VIX indicators: why they fail
23:04 Short-term finding: SPX times itself better than VIX does
30:01 Practical VIX trading instruments (futures, options, ETFs)
37:20 Contango drag and the structural headwind for long VIX
42:02 Using SPX signals to trade VIX instruments
47:22 Robustness testing and VIX recovery speed
55:01 Key takeaways
Related episodes:
• A new approach to trading volatility with Rob Hanna: youtu.be/Kv1y7KHgYEg
• Forecasting a volatility tsunami with Andrew Thrasher: youtu.be/mT0z2vkR3N8
Rob Hanna runs Quantifiable Edges and has managed capital full-time since 2001. His 2024 NAMA Founders Award paper compared SPX and VIX as short-term timing indicators across RSI periods of 2, 3, and 4 and multi-day high/low lookbacks of 5, 10, 15, and 20 days. Full paper at SSRN abstract ID 4808230. VIX trading course at bettersystemtrader.com/vix.
---
► Better System Trader: bettersystemtrader.com
► Follow on X: twitter.com/bettersystrader
#VIXTrading #SystemTrading #AlgoTrading
Disclaimer:
Trading in the financial markets involves a substantial risk of loss. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice.
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