HEDGING Volatility-Fundamentals

Trading
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Dear Hedging traders/Fund Managers

All who do hedging shall agree upon one thing that VOLATILITY IS THE KING IN HEDGING.

Good volatility brings decent profits in Hedging whereas poor volatility can end up is a bit of loss.

Here are the Hedging Volatility-Fundamentals:

  1. Last week’s market (high/low,) is this week’s sideways market

  2. Expect not more than 50% of last week’s volatility when trading within sideways market

  3. Expect not more than 100% volatility when trading outside the sideways movement.

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FOR HEDGE FUND MANAGERS

You are having a greater responsibility of managing people’s money. You have recruited excellent team for market/technical analysis.

In addition to that my sincere suggestion is to include a chart studying expertise to you team for confirmation of your market/technical analysis.

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@hencjjsjahhaj any insights on the connection between volatility and hedging?

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I really should spend less time on the internet. I deleted Instagram but now Tradingqna is it. Why don’t you become a professional and once you perfect, start managing people’s money. Once you get big enough clients, they won’t wait for you to share your strategy and all the trading you know, they’ll ask themselves. Then you could also get a good writer to publish a book about it. Or your company’s annual or monthly reports could dedicate a section for it and you could share it with everyone by your website too.

On an unrelated note, I really don’t think so hedging and volatility are connected directly. I focus on strategies and factor volatility and hedging as I need. Never really connected them outside the whole package. I use discretion you know. So I might be wrong.

1 Like
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There is a possibility that I can be good in hedging in some years from now. But as of now I want to focus only on options trading on Index.

Thanks for your sharing on the volatility.