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All About Volatility

There are several measures of volatility. (Historical Volatility, Implied Volatility, Average True Range, Bollinger Bands, etc..) The first is the actual volatility of the stock. This is seen in the HistoricalVolatility, which can be measured over any time frame but…
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Visual Backtesting Environment

When creating your stock & options trading systems, you can use our Interactive Development Environment (IDE) to build your trading systems with a few clicks of the mouse. If you are a non-programmer, you can build trading strategies visually using…
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Stock Replacement Strategy

Jim Cramer, host of CNBC’s Mad Money, discussed an options trading strategy called the “Stock Replacement Strategy“. The main purpose of the Stock Replacement Strategy is the reduction of overall portfolio risk through the replacement of stocks using deep in…
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Backtesting Gamma Scalping

Charles Cottle, author of  Options Trading – The Hidden Reality, recently published a strategy on gamma scalping / dynamic hedging. He discusses using stock to dynamically adjust a position back to delta neutral as the position’s delta hits thresholds. We…
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Backtesting Short Butterflies

Jeff Augen, author of  The Volatility Edge in Options Trading, recently published a strategy on trading weekly short butterflies. He discusses the following strategies for trading weekly short butterflies: Sell an At-The-Money Butterfly on the Friday prior to expiration Close…