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197: “How to use volatility to outperform the market” – Kyle Schultz

Better System Trader

CHAPTER

The Best Indicator to Measure Volatility?

Standard deviation is the standard measure, but it's not the best. You want to use a sortino ratio, which uses return to downside deviation or calma ratio and omega ratio. Positive returns, high hi A positve returns. That's looking at the distribution of returns.

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