About file VIX_data.csv

Course Name: Trading using Options Sentiment Indicators, Section No: 4, Unit No: 10, Unit type: Video
 

I didn't understand how the VIX_data.csv file was generated. Could you explain me?
Another question, could the VIX indicator be used for intraday trading as well?

As mentioned in the course, we retrieved data related to VIX from the Quandl python library. As of now, Nasdaq has acquired Quandl and there might be a few changes on which datasets are free and which require premium access. You can check this link which will provide the information on how to retrieve VIX data from Quandl. Link: https://blog.quantinsti.com/nasdaq-data-link/



You can also retrieve daily data of VIX from Investing.com or yahoo finance as well.



Just to clarify, VIX or the volatility index is used to gauge the implied volatility of the market. It is not in itself an indicator, but traders use it as an indicator of the general sentiment of the market. 

Two things come to mind when you think of using VIX for intra day trading. 



While VIX is dynamically calculated, it is the most fluctuating in the morning and at different points of the day. Thus, using VIX for intra day trading could lead to "frequent" and "erratic" signals. Thus, people generally tend to look at VIX for a longer time period, like a day.



However, you could try to backtest a VIX based strategy on intraday data as well. And if you feel it gives satisfactory performance, you should go ahead and paper trade it as well. Once you are confident of the strategy, only then go ahead and live trade.



Hope this helps. .