|
PureBytes Links
Trading Reference Links
|
> Volatility is the most valuable thing I look at. I recall that some Market
> Wizards speak very highly of it also.
> For a simple example, Let's say you beleive that markets swing from low to
> high vol (not to difficult), then placing entry stop orders either side of
> vol bands, should get you set for a big move either way.
I wish you'd explain this in greater detail. (I'll even say "Please." <g>)
Not sure I understand exactly what you mean by "placing entry stop orders
either side of vol bands." Sorry to be slow. Do you mean placing the orders
outside the top/bottom band, for a breakout, or outside the top/bottom band for
a return trip?
It seems that a price which falls outside of the 2nd StDev is relatively
uncommon, right? So if such an event occurs, aren't the chances pretty good
that you won't get another one right away. On the other hand, every so often a
price event occurs "out there" and it continues, it stays there. Voila! The
successful breakout.
Based on your observations, can you (better phrased perhaps as 'would you be
willing to') discuss what characterizes a good volatility breakout as opposed
to a poor one? In other words, what does price action have to look like to
warrant trading a continuation of the move in the direction of the breakout, as
opposed to fading it? This is a money maker, folks.
Let me also address a question to Walter Lake. Forgive me if I'm mistaken, but
wasn't it you who (about 10-12 days ago) spoke of 3 or 4 sigma events that
could really make money -- or have the opposite effect! Does my memory serve
me well? I remember thinking at the time "Hmm, Walter has probably given this
topic some careful thought." I'd be really grateful if you would comment.
Philip
> But as always, entry is only the tip of the icecream.
>
> IMHO - The best indicators are Stdev and ATR.
>
> Michael Samerski
> Metronome Trading Systems Pty Limited
> email : michael@xxxxxxxxxxxxxxxxxxxxxxxx
> www : http://www.metronome-trading.com.au
> <http://www.metronome-trading.com.au/>
>
>
>
> -----Original Message-----
> From: Theo E.M. Lockefeer [mailto:sky40912@xxxxxxxxx]
> Sent: Tuesday, 14 December 1999 21:09
> To: Metastock User Group
> Subject: Volatility
>
> Can someone give his views on Volatility :
>
> Succesfull systems implemented ? Which are good Volatility indicators ?
>
>
>
> Thx
>
> Theo
|