Confluences

Volatility Regime Model Confluences

The Volatility Regime Model is designed with built-in cross-asset confluence. It actively checks multiple markets to validate signals:

• Credit Spreads (HY vs IG): Widening credit spreads indicate corporate stress and validate equity volatility.
• Cross-Asset Vol (MOVE Index): Bond market volatility repricing in tandem with equity volatility confirms macro shifts. By integrating these, the model itself is a confluence engine. Additionally, traders can pair this with trend-following systems on major indices (e.g., SPY, QQQ) to avoid getting chopped up during Mid/High Vol regimes.