The first quarter of 2011 began with increasing volatility, culminating with an exceptional spike in the VIX for March. While volatility is usually bad news for buy-and-hold investors, it’s good news for us.
The MultiStage Trading System thrives on volatility. I don’t necessarily care whether the market goes up or down, as long as it moves. Our system is very consistent in generating profits from trades, so the name of the game is “more trades”. And volatility does just that… it generates more trades.
This snapshot was taken on after the close on March 15, which was a big day for IV. The VIX (a measure of implied volatility) had been hanging around in the high teens for more a couple of months, and decided to climb in March. This final spike happened among world calamity following the earthquake and nuclear meltdown threats in Japan. I feel a little cheap to be profiting while so many are suffering, but often these are the things that bring wild swings in the market.
The market moved wildly today, the Dow was down over 200 at one point, closing down $137 (1.15%). I’m not happy that others lost money, yet these are good environments for us. The MultiStage system triggered 12 new trades today. Good stuff! I’ll report more about the Q1 results at the end of the month. Until then…
Good Trading…
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