@Karthik sir, yesterday there was an alert in kite about the volatility based stop loss, i wanted to view it but seems its unavailable. Can you please let me know where to find it?
@Karthik Calculating volatility is a time consuming task for a day trader. Is there any source which providing ready made volatility at least for Nifty 50 or F&O stocks?
In that case, you may want to check the ATR indicator - https://zerodha.com/varsity/chapter/supplementary-notes-1/
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@Karthik When I am trading in 15 Minute chart, which ATR I have to consider? The 15 minute ATR or Daily ATR.
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ATR by Default it will show for last 14 candles, so if you are on 15 min chart, then it will show you last 15 mintus Chart and if you are on 1 day chart then it will show you for last 14 days.
If you are short term trader better you chose 15 Minutes ATR only
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@Karthik I found Daily Volatility of NSE stocks in their website as CSV file. Is that data is inline with your calculation?
You can use this value. They are slightly different, but you can use them.
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@Karthik thanks a lot. You have been a source of constant learning and you have made me a systematic trader . one thing i wanted to know is : if daily volatility is calculated of Bank Nifty (which i have as per your method & it works!) can writing options outside the range (intraday) work? I wanted to know from the master(you)- from your vast experience - so that i can jump into the actual trades. awaiting your reply…
@Karthik
Saw your this video
about Volatility based S/L.
if using volatility based S/L, the risk to reward ratio will also be 1, should i calculate profit based on this or not?
is it just for S/L?
Also in varsity you mentioned that stoploss should be low of the pattern (long) or high of the pattern (shorting).
What to prefer?