tag:blogger.com,1999:blog-514949482151246868.post5238132415228036988..comments2013-04-28T19:50:57.374-05:00Comments on Trading the Volatility System: Riverbed Technology (RVBD)Johnny Sunkelhttp://www.blogger.com/profile/08051332560924026270noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-514949482151246868.post-12059847580903136542011-05-16T21:30:37.333-05:002011-05-16T21:30:37.333-05:00Thomas,
I use the system exactly the way Welles Wi...Thomas,<br />I use the system exactly the way Welles Wilder lays it out in his 'New Concepts in Technical Trading Systems' book. <br /><br />First I calculate True Range (TR), then Average True Range (ATR). I multiply the ATR by an Average Range Constant (ARC) of 3.0, and that determines my Stop-and-Reverse (SAR) price. Then I use the variance between the SAR and the current price to determine whether I should be long or short. With a positive variance (price above the SAR), I'm long; and when the price crosses below the SAR I reverse to short. <br /><br />I use it as a true reversal system, meaning I'm always in a stock either long or short.<br /><br />But here's probably the most important thing about how I use the system: I use weekly price data. I'm trying to follow long-term trends, and I don't want to trade a lot. In fact, I only place trades at the close on Fridays and sometimes at the open on Mondays.<br /><br />I hope that answers your question? If not, just let me know where I need to give more details.<br /><br />Thanks,<br /><br />JohnnyJohnny Sunkelhttps://www.blogger.com/profile/08051332560924026270noreply@blogger.comtag:blogger.com,1999:blog-514949482151246868.post-38056172354838822192011-05-13T15:05:11.547-05:002011-05-13T15:05:11.547-05:00Can you explain how you personally trade the volat...Can you explain how you personally trade the volatility system? Thanksthomasfindlan@hotmail.comhttp://www.pitteye2020.comnoreply@blogger.com