Volatility Trading Based on Pattern Recognition: Returns up to 21.14% in 1 Month

August 1, 2021

Volatility Trading

Volatility Forecast: This Volatility Trading 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 Forecast
Recommended Positions: Long
Forecast Length: 1 Month (7/1/21 – 8/1/21)
I Know First Average: 10.61%
Volatility Trading
Volatility Trading chart

During the 1 Month forecasted period several picks in the Volatility Forecast Package saw significant returns. The algorithm had correctly predicted 2 out 2 returns. ^VXD was the highest-earning trade with a return of 21.14% in 1 Month. ^GDAX and ###CVSTABLE1-RANK3-SYM### followed with returns of 0.09% and ###CVSTABLE1-RANK3-RET###% for the 1 Month period. The package saw an overall yield of 10.61% versus the S&P 500’s return of 2.27% implying a market premium of 8.34%.

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

Algorithmic Stock Forecast: The table on the left is a stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. Note that the top 2 stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant stocks have been included. The boxes are arranged according to their respective signal and predictability values (see below for detailed definitions). A green box represents a positive forecast, suggesting a long position, while a red represents a negative forecast, suggesting a short position.

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

Volatility Forecast