Sorry, the VIX and the S&P are two different things. There are some stratergies on VIX and SPY. If you mean one can use the S&P as VIX like, what the useness of the stratergy using combination of VIX and S&P?
@thomas2004ch The Vix and S&P are 2 different things yes, but its important to know that the vix is (from investopedia:) “the VIX is a benchmark index designed specifically to track S&P 500 volatility. ”
As i said, it just measures how volatile the S&P is. Not exactly “average true range” but it does measure how volatile this 1 index is. As vonasi mentioned, volatile dosnt mean good or bad for the S&P, just means that things are shaking up, big daily candles are happening, at least big daily ranges. I think that what your looking for is to use the Vix as a somewhat filterfor ur systems? “If Vix goes up, then dont trade” kind of thing? Cus u can use options like the one Vonasi said here, or u can use ranges or average true range so on.. (if you just want a filter that says “dont trade if market is too volatile”.)
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