Tracking daily volatility - Aussie Stock Forums

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  1. #1

    Default Tracking daily volatility

    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.


  2. #2
    awg's Avatar
    Join Date
    Sep 2007
    Newcastle, NSW

    Default Re: Tracking daily volatility

    depends on what timeframe and instrument you trade, also skill

    If you read posts from Trembling Hand, MRC& C and other SPI traders, they trade volatility.

    I personally dont have the skill yet, or time, to do this, and have been burnt on volatility.

    Market Wizard series very interesting cause they prove there are completely different methods to success

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