3min chapter

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

Better System Trader

CHAPTER

Y, So You're Applying Volatility as a Filter to See How the Strategy Performs?

volatility can be used as a filter to see how the sraty performed in different regimes. What if you identify that there is a particular regime where the strategy is really, really poor? How would you manage it then? Cause you've got options like you can switch it off, or, as we mentioned just a moment ago, an am adjusting stops, anexits. But ultimately, if you create a diversified portfolio, you know both, mean reverting and momentum strategies. Ah, you can use some of that, but sometimes you just need to diversify away that risk with other strategies, right?

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