2020-12-27 The Augmented Bolling

Countless are they, the ways to approach the markets, and I will continue publishing my research as long as it benefits readers. One such distinct way of approaching the markets, is volatility.

Some say that the concept of volatility is the most important one in the financial markets industry. Trading the volatility bands is using some statistical properties to aid you in the decision making process, hence, you know you are in good hands. In this article, we will deal with what I call the Augmented Bollinger Bands. A new breed of volatility bands that tries to incorporate as much information as possible within its calculation. It is designed to be in discretionary and systematic trading.

I will start first by an introduction to the concept of Volatility Bands, then I will present the Augmented Bollinger Bands before back-testing a systematic strategy that relies on its signals.

If you want to read about more interesting indicators, check out the below article on the Fibonacci moving average which is a new way of finding dynamic support and resistance levels.