michael25
4th-November-2008, 11:40 AM
Hey guys,
I was reading 'trading risk' by Ken Grant and came across an interesting concept of tracking daily volatility..for example you stop trading if voltality in the market exceeds a certain threshold (eg: 10%). It reminded me of larry hite's interview in market wizards as it says he also uses this technique.
Does anyone utilise this? doesn't it seem a bit padantic to liquidate and stop trading the market based on volatility reaching a certain threshold? would it not be better to scale out of a position?
If anyone has any experience using this technique i would love to hear it.
Cheers
I was reading 'trading risk' by Ken Grant and came across an interesting concept of tracking daily volatility..for example you stop trading if voltality in the market exceeds a certain threshold (eg: 10%). It reminded me of larry hite's interview in market wizards as it says he also uses this technique.
Does anyone utilise this? doesn't it seem a bit padantic to liquidate and stop trading the market based on volatility reaching a certain threshold? would it not be better to scale out of a position?
If anyone has any experience using this technique i would love to hear it.
Cheers
