3 Volatility Strategies To Get You Started Trading Volatility – (Strategy Bundles)
This bundle consists of three strategies that can be labeled volatility trading strategies. The strategies are backtested on the ETF with the ticker code SPY, which tracks the S&P 500. We have not backtested on @ES, but it might work if trading the same opening hours as SPY.
Buy and sell orders are backtested using the closing price (how to trade at the close – or alternative entries). No commissions and slippage included (estimated commissions and slippage).
In all our bundles you will find both Amibroker code, Tradestation code, Pine Script/TradingView, and the strategy written in plain English. The strategies are long-only due to the nature of the index.
- 2 strategies are not published anywhere on our website
- One strategy is in our monthly membership.
These strategies are long-only due to the nature of the index backtested.
Please read this before you buy:
- We don’t give rebates if you already believe you have one of the strategies. We believe the strategies are pretty cheap anyway.
Please check out our other Strategy Bundles.
Here are the details about each strategy (backtested on SPY/ES):
Volatility strategy 1
Strategy and performance metrics:
- #trades: 208
- Average gain per trade: 0.94%
- CAGR: 6.2%
- Time spent in the market: 10%
- Max drawdown: 23%
- Risk-adjusted CAGR: 63%
- Win rate: 80%
- Max consecutive losers: 3
- Max consecutive winners: 15
- Profit factor: 2.6
Volatility strategy 2
Strategy and performance metrics:
- #trades: 307
- Average gain per trade: 0.77%
- CAGR: 7.6%
- Time spent in the market: 14%
- Max drawdown: 16%
- Risk-adjusted CAGR: 54%
- Win rate: 76%
- Max consecutive losers: 4
- Max consecutive winners: 12
- Profit factor: 2.5
Volatility strategy 3
Strategy and performance metrics:
- #trades: 265
- Average gain per trade: 0.8%
- CAGR: 6.8%
- Time spent in the market: 9%
- Max drawdown: 15%
- Risk-adjusted CAGR: 72%
- Win rate: 79%
- Max consecutive losers: 2
- Max consecutive winners: 19
- Profit factor: 2.9
Here you can find more trading strategy bundles
FAQ:
What is volatility trading, and why is it essential in the financial markets?
Volatility strategies focus on the anticipated magnitude of price changes rather than the direction of the market. Volatility trading involves making investment decisions based on the expected level of price fluctuations in the market. Understanding and trading volatility is crucial for managing risks and capitalizing on market movements.
Why are the strategies in the bundle long-only, and how does this relate to index backtesting?
Users can find detailed information on the performance metrics of Volatility Strategy 3, including average gain per trade, CAGR, time spent in the market, max drawdown, risk-adjusted CAGR, win rate, and more. Traders get an explanation of why the strategies in the bundle are long-only, specifically in the context of index backtesting. Understanding the nature of these strategies is crucial for effective implementation.
How do volatility strategies differ from traditional trading approaches?
Volatility strategies distinguish themselves by focusing on the expected magnitude of price changes, diverging from traditional trading approaches that primarily concentrate on the market direction. These FAQs aim to provide a clear understanding of the unique characteristics of volatility strategies.