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Trading Strategies >> Software Infrastructure >> using volatility such as ^VIX in placing stops
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Message started by WZP on 05/27/09 at 15:14:02

Title: using volatility such as ^VIX in placing stops
Post by WZP on 05/27/09 at 15:14:02

Hi folks,

Can anyone give me a quick rundown on using volatility indicator such as ^VIX in placing stops?
Is there a math formula?
I have developed a pretty good market prediction system, http://braindot2.com
but it is lacking a buy/sell trigger (at what price?). In view of the current volatility this becomes critical.

I could do back-testing, but in my system it's just too time consuming. I'm looking for a better way.

WZP