Systematic Trading

Volatility Forecast: This Volatility forecast is designed for investors and analysts for systematic trading and those who need predictions of the implied volatility for a basket of put and call options related to a specific index. It includes 8 volatility indices with bullish and bearish signals and indicates the best Volatility Index to trade:

• Volatility indices for the long position
• Volatility indices for the short position

Package Name: Volatility
Recommended Positions: Long
Forecast Length: 1 Month (10/04/2016 – 11/04/2016)
I Know First Average: 32.63%

In this 1 Month forecast for the Volatility Package, there were many high performing trades and the algorithm correctly predicted 8 out 10 stocks. The top-performing prediction in this forecast was ^VXO, which registered a return of 79.58%. Additional high returns came from ^VIX and ^VXD, at 65.88% and 64.95% respectively. The package had an overall average return of 32.63%, providing investors with a premium of 36.15% over the S&P 500’s return of -3.52% during the same period.

The CBOE Original Volatility Index (VXO) calculates and disseminate the volatility index introduced in 1993 based on trading of S&P 100 (OEX) options. This index has a price history dating back to 1986, which remains the same. As of September 22, 2003, the name was modified — the original-formula index is now known as the CBOE S&P 100 Volatility IndexSM and is now disseminated under the new ticker symbol VXO.

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

How to interpret this diagram

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.