Trading Masterclass: Risk Management | Market Wizard Tom Basso
The TraderLion Podcast
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How to Use Trend Following Models to Measure Volatility
I prefer trend following models that have the ability to change on the fly with changing conditions. With Donchin channels you're measuring the top and the bottom of a price range x days. Ballinger bands they use standard deviation of the prices over a certain period. So I use 21 days look at the standard deviations two bands wider when it's volatileLess less wide when it's not volatile. That way I don't have to sit here and be re-optimizing my indicators once a month or once a year or any other period. They sort of optimize themselves and that keeps the indicators far more robust. Using them together kind of is a very synergistic way of looking at it. Perfect and
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