Volatility bands long-term strategy

Volatility bands long-term strategy
This article "Volatility bands long-term strategy," by Ahmet Tezel, Ph.D., and Susan Koknar-Tezel, MS, which appears in this issue presents two different volatility band trading systems. One system uses bands based on moving averages and the other is based on bands using regression. To plot a Moving Average Asymmetric Volatility Price Bands in MetaStock for Windows, simply plot Bollinger Bands using 11 periods and 1.7 standard deviations. Then click your right-mouse button while the cursor is above the lower band and choose Properties. Change of standard deviations to the second This plot will now appear just as the bands discussed in the article.
To plot the regression Asymmetric Volatility Price Bands in Metastock for Windows, simply plot standard error Bands using 21 periods, 1 for standard errors, and 1 for smoothing periods. Then click your right-mouse button while the cursor is above the lower band and choose Properties. Change the standard error of 1.5.
To recreate the systems in MetaStock for Windows, choose System Tester from the menu Tools. Next choose New and enter the following trade rules and stop conditions. After entering this information, select Options and change the trade suspension to 1, then change the Trade Price Open. If you have MetaStock 6,5 into the first set of formulas. MetaStock 6,5 allows variables that will allow you to change the times when testing a lot easier.

Formulas for 6,5 MetaStock
MovAvg Asymmetric Volatility Price Bands
SIGNAL formulas
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Enter Long:
Periods: = 11;
UpperBand: = BBandTop (close periods, S, 1.7);
BuySignal1: = Sum (close> UpperBand, 3) = 3;
BuySignal2: = CLOSE> UpperBand AND Ref (Low, -1)> Ref (upperband, -1);
BuySignal3: = LOW> UpperBand AND Ref (close, -1)> Ref (upperband, -1);
BuySignal4: = CLOSE> UpperBand and close> 1,4 * LLV (Low, Periods + 1) and Mov (volume, 3, C)> 2000 {assuming volume in 100 otherwise use 200000} And Mov (high, 3 S)> UpperBand AND Mov (high - low, 3, S)> Mov (high - low, periods, S);
BuySignal1 BuySignal2 OR OR OR BuySignal3 BuySignal4
Close Long:
Periods: = 11;
LowerBand: = BBandBot (close periods, S, 2);
SellSignal1: = Sum (close <LowerBand, 3) = 3;
SellSignal2: = Close <(1-.18) * HHV (high, Periods + 1) and amount (close <LowerBand, 2) = 2;
SellSignal3: = Close <(1-.18) * HHV (high, Periods + 1) AND HIGH <LowerBand;
SellSignal1 OR OR SellSignal2 SellSignal3

Stops
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Maximum loss DEBT ONLY
10.00 percent



Regression volatile Asymmetric Price Band
SIGNAL formulas
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Enter Long:
Periods: = 21;
UpperBand: = STEBandTop (close periods, 1);
Amount (close> UpperBand, 3) = 3 and LinRegSlope (close, 21)> 0 and Taiwan (Correl (close, Cum (1), 21.0), 2, $)> = 0.2
Close Long:
Periods: = 21;
LowerBand: = STEBandBot (close, period, 1.5);
SellSignal1: = Sum (close <LowerBand, 3) = 3;
SellSignal2: = Close <(1-.18) * HHV (high, Periods + 1) AND HIGH <LowerBand;
SellSignal1 OR SellSignal2
Stops
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Maximum loss DEBT ONLY
10.00 percent