This paper studies whether the application of technical indicators to the VIX index (Volatility Index, VIX) can obtain substantial returns in the VIX future market. The VIX index is also known as the fear gauge index, because the VIX index will rise during a sharp decline in the stock market. As such, investors utilize VIX to read market sentiment since the VIX index cannot be traded as an asset. In 2004, CBOE launched VIX futures, which let investors began to invest through this market index. Investors can choose to predict future volatility trends or add VIX futures to hedge the risk of the portfolio. The sample period of this research is the daily data from January first, 2007 to March 25th 2022, using the sell and hold strategy, the Bollinger Band (BB), Stochastic Oscillator (KD), and Relative Strength Index (RSI) indicators to analyze the profitability. The results show that using technical indicators cannot obtain excess returns, and the sell and hold strategy is still the best strategy in VIX futures.
