Volatility Trading
A framework for treating volatility itself as the variable to trade. HV vs IV, volatility regimes, and ATR-based sizing — read as the crowd's emotional temperature.
Overview
Volatility Trading is less a single indicator than a framework for treating volatility itself as a tradeable variable. The object of analysis is not price direction but the magnitude — and the expected magnitude — of price's movement.
Where conventional technical analysis asks which way will it move, volatility trading asks how will the movement itself change. Will the range expand or compress? Is the current level of movement historically elevated, or unusually quiet? This essay describes a framework for answering those questions systematically.
The intellectual lineage runs through Sheldon Natenberg's Option Volatility and Pricing and Euan Sinclair's Volatility Trading. But the ideas matter even for directional traders, because every directional strategy implicitly depends on the volatility regime in which it is run.
The Esoteric Volumes · By Application
What lies beyond this point is opened only to those who have applied.
Capital, discipline, psychology. The chapters that sit behind technique describe the bone-work that keeps an operator in the market for years. Access requires a written application, reviewed by hand.