VIX Investment Strategy 2025-2026

A guide to cash/investment allocation based on the CBOE Volatility Index (VIX).

📈 View Current VIX Chart (TradingView)
Level 1

VIX ≤ 12

Extreme Greed

Cash: 40–50%

Invested: 50–60%

Time to be cautious.

Level 2

VIX 12–15

Greed

Cash: 30–40%

Invested: 60–70%

Maintaining elevated exposure.

Level 3

VIX 15–20

Slight Fear

Cash: 20–25%

Invested: 75–80%

The "normal" range; still bullish.

Level 4

VIX 20–25

Fear

Cash: 10–15%

Invested: 85–90%

Anxiety setting in, time to deploy cash.

Level 5

VIX 25–30

Very Fearful

Cash: 5–10%

Invested: 90–95%

Deep value territory; almost fully invested.

Level 6

VIX ≥ 30

Extreme Fear

Cash: 0–5%

Invested: 95–100%

Action: New Cash Added To Brokerage