The VXX Index is calculated using an algorithm that considers various inputs, including stock prices, options prices, and other market data. The index uses a weighted average of these inputs to create an estimate of future volatility. This means the VXX index can be used to gauge investor sentiment and predict market movements over the short term.

It's important to note that the VXX index is not an actual security but a measure of future market volatility. As such, it is often used by traders as an indication of what direction the markets are likely to move in over the near term.

The answer to this question largely depends on your trading strategy and risk tolerance. Generally, some traders would avoid trading VXX when the market is in a period of high volatility. This is because VXX tends to be more expensive during these times, which can result in losses if you get caught up in the frenzy. SOme would wait until the market calms down to buy VXX at a more reasonable price.

The VXX, or the Volatility Index, it's a measure of implied volatility in the US stock market, and moves inversely to the SPX500 index. As such, if you think that the stock market will decline, then it may be worth considering trading the VXX as a way to capitalize on that.

There are a few different ways to trade the VXX, depending on your trading platform. You can trade futures contracts or ETFs, or go with options or even buy and sell individual stocks related to the index. Futures contracts are usually more liquid than other forms of investment, making them ideal for active traders.