How to trade with any volatility indicator?

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oem7110
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How to trade with any volatility indicator?

Post by oem7110 » Wed May 07, 2014 11:39 pm

I would like to know on how to trade with any volatility indicator.

Does anyone have any suggestions / example?

Thanks in advance for any suggestions

sluggo
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Post by sluggo » Wed May 07, 2014 11:57 pm

J. Welles Wilder's landmark book "New Concepts" (still available new on Amazon) includes a full and complete mechanical trading system called The Volatility System. Maybe that might be something worth studying.

Here is a discussion thread about the mechanical system, on another website. This thread may assist people who own the book but haven't yet written the code: (link).

And, come to think of it, Futures Truth magazine tracks the real-time performance of The Volatility System, it is system #85 in their reports. See below. You could check their magazine to see whether its performance, after the book was published, is acceptable to YOU.

Image

oem7110
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Post by oem7110 » Thu May 08, 2014 12:19 am

sluggo wrote:J. Welles Wilder's landmark book "New Concepts" (still available new on Amazon) includes a full and complete mechanical trading system called The Volatility System. Maybe that might be something worth studying.
From his book, Volatility only provides definition on how to calculate ATR and apply ATP into SAR, that is all.

Do you have any other approach on how to apply volatility into trading signals?

Thank you very much for any suggestions :>

sluggo
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Post by sluggo » Thu May 08, 2014 11:33 am

I think you had better write a stiff note to Futures Truth magazine, informing them that The Volatility System (whose real-time performance they have been tracking for 20+ years), is not a trading system at all.

oem7110
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Post by oem7110 » Thu May 08, 2014 11:39 am

sluggo wrote:I think you had better write a stiff note to Futures Truth magazine, informing them that The Volatility System (whose real-time performance they have been tracking for 20+ years), is not a trading system at all.
Please read page 21-23 about volatility system, which only talk about ATR calculation and then SAR ...

Do you have any suggestions?
Thank you very much for any suggestions :>

http://books.mec.biz/tmp/books/218XOTBWY3FEW2CT3EVR.PDF

rhc
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Post by rhc » Thu May 08, 2014 11:03 pm

oem7110 wrote:Please read page 21-23 about volatility system, which only talk about ATR calculation and then SAR ...
Yes, that is true but if you were to read page 24 & beyond then you might find what your are looking for
(especially the part that says, "Now lets define the Volatility system . . . . . . . . . . ")

marriot
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Post by marriot » Fri May 09, 2014 2:51 am

You are a little bit lazy.
As punishment go and test these all
http://www.oxfordstrat.com/resources/

:D

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