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The Relative Volatility Index. Deriving Trading Signals from Fluctuations.
Creating and Back-testing a Contrarian Indicator Using Pure Volatility.
Every aspiring or professional trader knows about the Relative Strength Index — RSI. A contrarian momentum indicator that is trapped between 0 and 100 which is used in a lot of discretionary and systematic strategies. But what about using volatility within the same reasoning of the RSI? This should give us another view that can confirm our views. By this, we are talking about the Relative Volatility Index — RVI. An indicator that we will present in detail below and back-test it through a simple strategy.
I have just published a new book after the success of New Technical Indicators in Python. It features a more complete description and addition of complex trading strategies with a Github page dedicated to the continuously updated code. If you feel that this interests you, feel free to visit the below link, or if you prefer to buy the PDF version, you could contact me on Linkedin.
