never thought the thing i found most boring in school would be the most interesting thing i have discovered after i grew up, thank you sir.
Great introductory discussion. It would be great to have Dr. Jim do a similar presentation on skew, and how it should impact the decision-making process during entry/management/exit of a trade.
Thanks for posting. I think I'm a standard deviant.
Jim, or Tastylive, How is SD correlated to Delta? I have been under the impression that a 15 Delta corresponds to a 85% chance of success( or profit). Likewise, a 20 Delta is a 80% chance of success( or profit). Thanks in advance
I use standard deviation on the RSI of a stock. Works well.
Very useful video, thanks for sharing!
What happened at 5:30? Was he edited out or just a glitch in broadcast?
Thanks Doc...
Are you talking about looking at a daily or hourly chart (bollinger bands) or any kind of chart ?
I am currently using standard deviation channels and like them. However, I'm hearing about regression channels which are similar but not the same. Is it correct to assume that you prefer standard deviation channels over regression channels?
Should std dev (IV) be portrayed by calendar days (365) or trading days (252)? All the brokerages (I believe) use calendar days, with the idea being that information that can affect asset prices occurs just as readily over the weekend as M-F. If that's the case, then volatility on Mondays should be significantly higher than Tues-Fri -- but, empirically, it's not.
But the financial series is not normally distributed .. but serially correlated .. prices go from 1,2,3 .. not 1 to 3 back 1 than to 2 .. 3 Bollinger band moves are the norm not the exception
this is literally all i use to trade lol. its hard to pinpoint sometimes and im not a gajillionaire or anything but staying green over few years now.
Awesome video!
Can somebody help me in this please? So if S0 is the current stock price, 1 SD is equivalent to what metrics in stock company? If it’s IV, then do we have to convert Annualized IV to weekly?
The "Shooter McGavin" Strat? Lol...sign me up!
It changes all the time, you set current price as mean, and it depends on how long it will last.
👎Stock price movements don't follow the normal distribution.
We'd have like some more about
@scsmith4604