ItвЂ™s a true holy grail system, Sharpe ratio > 2.0. ThatвЂ™s about double what you can normally expect with a pure mechanical automated system.Д¬ertainly as good as the very best discretionary systems, without any of the messy decisions. 38-.42 expectancy with very small drawdowns. The real reason for trading volatility edges is that they are INCREDIBLY strong. This is an innovative approach with many practical implications, and for those rare nerds that enjoy this stuff here is a video about it. Michael has some solutions, in an area which stumped my best research efforts for years. What he is essentially doing is building a machine learning model of how this market should behave, and noticing when the market is out of sync with the model.ДЄny serious person knows that market classification and managing regime change are the black belt level topics for serious traders. We will get into the details later, since those with programming skills might find some useful nuggets.ДЇor those technically minded IвЂ™d like you to pay particular attention to where he talks about not trading mean reversion to PRICE, but mean reversion to his model. ItвЂ™s a volatility system, but not the usual type. He and I went our separate ways in 2015, but remained friends, and we collaborate here and there and share ideas.ДЄnyway, his system is based on something which I simply donвЂ™t have the skills to do.

He originally automated Crazy Ivan and ran it for clients, and we both developed more advanced things off the back of that. Most of you know that back when I was first going down the automated system route, I worked with Michael (from ). 4 expectancy for a fully auto system is quite extraordinary.

I know quite a bit about this system and it is a very, very strong edge. IвЂ™ve never recommended a signal service before, because most of them are shoddyвЂ¦ but this is a different beast. At this point the bears have the advantage but the high volatility environment makes trading far more difficult.ДЇor the next week or so IвЂ™ll be sending you some information on the Vixen volatility system and signal service, and then Michael is going to get on a live event and answer your most vexing questions and open his kimono and show us the real results.ДЄnd IвЂ™ve convinced him to give you guys a try of it for free, which is nice of him. While it is highly unlikely we drop in a straight shot from here without at least attempting a counter trend bounceвЂ¦ we could easily fake drop down first. IвЂ™d stand aside from equities for next week unless you are a thrillseeker. This is the highest probability outcome, and itвЂ™s still not much more than a wild ass guess. Lots of cross currents makes things less predictable. We have bottom fishing longs, and bagholders too. We have shorts who might or might not hold for another leg down. We have trapped longs just waiting вЂњto get their money backвЂќ. High volatility is strong emotions, uncertain outcomes, wider stops needed. We are in a VERY high volatility market all of a sudden, and itвЂ™s worth considering what that means. This is the 10 year note, but itвЂ™s the same in ZB, ZF and ZT.Д¬heck out my Price Action Masterclass hereДЄs for the stock market, we will probably attempt a counter trend bounce, but itвЂ™s still not a very appealing long trade yet. We have some excellent setups for Monday in the bond market. And thatвЂ™s why IвЂ™ve been radio silent the last few days.ДЄnd although my bowel habits are admittedly fascinatingвЂ¦ letвЂ™s pivot to some market commentary. I picked up a virus here in Bali, and after 2 days of hitting the toilet like it was an olympic sport, ended up on an IV drip last night.В Ugh.

Radio silence fishing