Volatility Forecasting Based on Pattern Recognition: Returns up to 20.87% in 3 Days

Volatility Forecasting

Volatility Forecasting: This Volatility forecast is designed for investors and analysts 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

Volatility Forecast
Package Name: Volatility
Recommended Positions: Long
Forecast Length: 3 Days (10/28/2016 – 10/31/2016)
I Know First Average: 9.17%
Volatility Forecasting

For this 3 Days forecast the algorithm had successfully predicted 10 out of 10 movements. The highest trade return came from ^GVZ, at 20.87%. ^VXN, and ^VXD had notable returns of 12.85% and 12.57%. The overall average return in this Volatility package was 9.17%.

The CBOE Gold ETF Volatility Index (^GVZ) measures the market’s expectation of 30-day volatility of gold prices by applying the VIX methodology to options on SPDR Gold Shares (Ticker – GLD). Similar to other indexes using the VIX methodology, GVZ uses options spanning a wide range of strike prices.

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.