Trade volatility because it’s tried and true
Options traders trade volatility, as do market makers and quants at HFT firms. They are considered the “smart money”. Statistically speaking, when one has the opportunity to do what the “smart money” does, on a relatively regular basis, they should, because while there are absolutely no guarantees and there is always the risk of losing whatever you put at risk, the probability of making gains will be in their favor.
Trading volatility is not a new concept. It’s been around for decades, since Messrs. Black and Scholes introduced the idea to the markets in the 1970s.
Volatility is traded using the relevant proper mathematics of statistics and probabilities.
Volatility, also known as the Standard Deviation of Returns, or STDEV, is measurable.
There are volatility indicators available on TradingView that allow you to see these measurements as visual indicators on any asset’s chart and on any time frame.
Who we are
We are Alpha Trading Solutions. We host a community wherein we discuss trading volatility and market trading issues and ways to trade. We look at free and premium indicators that we use to trade volatility.
Where we are
What it costs
- It’s not free to join our community. It is an exclusive community of active traders sharing incredibly valuable information, so it is behind a members area entrance.
- It’s free for members to enter the live streams.
- It’s free to watch the videos on youtube.
- It’s free to learn about the relevant volatility indicators.
- It’s free to chat with other community members.
Did we mention that’s all free?
Why we do this
The reason we do this, is because we can not sit idly by and watch the entire Retail Trader market continue to have the wool pulled over their eyes by malevolent wolves in sheep’s clothing, also known as Technical Analysis (TA).
In our considered opinion, TA is a tool used by the top of the pyramid, marketed and targeted to Retail Traders (what the so-called “Smart money” calls “Dumb money”), so that the “dumb money” feels like they’re being smart, while actually they are just getting themselves REKT! on a consistent basis.
Most TA indicators, tools and techniques use low quality math, if any math at all. Many, like drawing lines, boxes diagonals and triangles, are completely subjective, statistically insignificant, and are more probably going to fail over time. They are about as good as voodoo.
High quality volatility indicators are built using proper math that is geared entirely towards trading assets with options and futures, and when you learn the systems we have designed, it is even possible to use the same indicators to trade volatility on spot or margin delta trades.
The evidence for this claim is based solely on the statistics and results.
The overwhelming majority of Retail Traders using “TA” lose most if not all of their trading capital within a few months or less. This churn rate even has a well-known “90-90-90” phrase that expresses how common it is. The phrase is that 90% of traders lose 90% of their money in 90 days or less.
So in our modest way, we exist to help as many people as possible, to make the transition from TA to trading volatility, and to help a whole new population of traders who have never done any TA and just want to learn what we think is the best way to trade: Trading volatility.
How Can You Benefit From This
How you can benefit from this is really up to you. Here’s an easy list of five steps you could take.
1. Enter the Discord.
2. Setup charts with the relevant volatility indicators.
3. Learn how to trade with the indicators. (Watch videos, read documentation, ask questions in chat and streams. Study, study, study!)
4. Practice trading with them with virtual accounts or paper trades until you are comfortable trading with them. (Practice is key!)
5. Then, once you’ve done and won practice trades repeatedly and consistently, trade with them for whatever actual capital and assets you choose to put on risk, once and only once you have low uncertainty and a statistical edge to your trading strategy with a highly probable success as an outcome for your trades. It is STRONGLY Recommended that You Do Not Trade for Real Money until you know what you are doing.
It all depends on what you want to do, and on your trading style.