The exact definition of a trend depends on the chosen implementation of a trend following algorithm. The average price of VIX is slightly below 20, but once in a while, VIX’s price spikes up. By selling options, you can profit from the contraction after each of these price spikes since implied volatility and thus options prices tend to drop back down to their normal state relatively fast. Algorithmic trading strategies are devised by a trader experienced in financial markets who also have theMer informasjon [...]