re: historic volatility ... andrew
Hi Andrew, as usual I assume too much.
I think there is discernable difference between specific Volatility based strategies and a T/A based trading system (timely entries/exits qualified with low/high trending view) that uses Volatility as a tool to develop trading strategies. (ie.choice of Option and whether spreads/straddles/strangles)
Consequently, favourable movements in Volatility are not the main strategy and therefore can be regarded as a bonus in that event even if anticipated ... hence risk-free.
In advance of the smarties ... an unfavourable movement is not a risk-free loss ... lol
Conversely, Volatility plays that specifically attempt to predict and seek profit from movements in Volatility and incorporate designed strategies accordingly would of course not be considered risk-free. Trading Volatility is completely different concept here.
I just assumed we all understood the difference.
All are of course free to disagree and in that event, thanks for allowing me my little foibles ...
