Step 04: how HST models are made

The V model is based on Technical Analysis (TA) of Volatility indexes as VVIX and VIX

the proprietary algorithm works on daily level of V an VIX and computes an indicator, updated on daily basis. Its outputs are:

  • a binary indicator (can be positive or negative)

  • a "barometer" showing how fare we are from the inversion point

V barometer

based on VVIX / VIX ratio

The Dix model is based on Dark Pools Analysis.

The proprietary algorithm works on daily level of the "Dark Pool Index" Dix and computes an indicator, updated on daily basis. Its outputs are:

  • a binary indicator (can be positive or negative)

  • a "barometer" showing how fare we are from the inversion point

The Z model is based on the Zahorchak index.

The proprietary algorithm works on weekly level of the "Zahorchak index" and computes a signal, telling us if we are in a risk on / risk off condition:

  • Z index can be positive or negative

  • we have no "barometers" telling us the distance from the inversion point