Volatility Resources

[Enrique Enguix]

Hello partners.  

I'm looking for ways to calculate volatility to make my systems more adaptive.  

So far I have used different tools to calculate volatility.  For example, the ATR, to define Take Profit, or to create channels to avoid trends in systems that work better in range.  

I have used the standard deviation, and other simple formulas like calculating the average candle size.  I have investigated other methods, such as the IVI (which does not work for forex).  

I want to add to my catalog some resources that help EAs to better adapt to movements (take profit, distance between trades on grids, stop loss, ...).  

Any suggestions would be welcome. Thanks

[Enrique Enguix]

Other options: 

1. Historical Volatility Index (HVI): it is calculated as the geometric average of the difference between the maximum and the minimum of the previous day, during a determined period (for example, 20 days).

 2. Bollinger Bands: they are a technical indicator that uses the moving average and the standard deviation to create limits around the price of an asset.  Bollinger Bands expand and contract based on price volatility, so they can be used to measure volatility.

[Fernando Carreiro]

In all my EAs I only use two types of volatility for calculations.

• Exponential Moving Average and Variance of the True Range
  
• Exponential Moving Variance of the Price.

In both cases I convert the Variance to Standard Deviation for calculations (Standard Deviation = square root of Variance).

I only use these and I am happy with the results they give me.

[Enrique Enguix]

Fernando Carreiro #:

In all my EAs I only use two types of volatility for calculations.

• Exponential Moving Average and Variance of the True Range
  
• Exponential Moving Variance of the Price.

In both cases I convert the Variance to Standard Deviation for calculations (Standard Deviation = square root of Variance).

I only use these and I am happy with the results they give me.

Very interesting!  I have never tried it like this!  Thanks Fernando! Muito obrigado

[Fernando Carreiro]

Enrique Enguix #: Very interesting!  I have never tried it like this!  Thanks Fernando! Muito obrigado

You are welcome! / Não há de quê! / ¡De nada!