Enter trade when vol appears outside of 2 std deviations of the difference in last consecutive minute bars for a period of n minuts.
exit trade near the middle boll band.
I'm still working out the details, but I'm setting the stop to be the number of pips given in the blue line . The normalizer is to adjust the price decimal place, so eur/usd would use 10,000 as normalizer, usd/jpy would use 100. Equities would use 100. This is based on mathematical concept called mean reverting and that statically Volatility mean reverts over time. Mean-Reverting Stochastic Volatility (2000, Jean-Pierre Fouque , George Papanicolaou)
crude oil , and precious metals can be traded via ETF, by CME Futures, or via a Currency Pair , such as XAU/USD.
So depends on the specification of the instrument:
for example if you was using hotspot to trade gold via XAU/USD pair: http://www.hotspotfx.com/products/currency.jsp, such as here XAU/USD listed the pip to be in the 2 decimal place, so the normalizer would be 10^2 = 100.
So depends on the specification of the instrument:
for example if you was using hotspot to trade gold via XAU/USD pair: http://www.hotspotfx.com/products/currency.jsp, such as here XAU/USD listed the pip to be in the 2 decimal place, so the normalizer would be 10^2 = 100.