How to Use Standard Deviation to Put Probabilities in Your Favor | From Theory to Practice

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[aminmino]

never thought the thing i found most boring in school would be the most interesting thing i have discovered after i grew up, thank you sir.

[scsmith]

This is why trading often and small is so important. Over the last 4 years of setting my strikes at 1 STD when doing Short Strangles my success rate is over 90% and as I learned to manage the trade during the trade duration I have learned to come in from 1 STD and still win the overall trade. Great information Jim!!

[wboquist]

Great introductory discussion. It would be great to have Dr. Jim do a similar presentation on skew, and how it should impact the decision-making process during entry/management/exit of a trade.

[donkndave]

Jim, or Tastylive, How is SD correlated to Delta? I have been under the impression that a 15 Delta corresponds to a 85% chance of success( or profit). Likewise, a 20 Delta is a 80% chance of success( or profit). Thanks in advance

[nw]

Thanks for posting. I think I'm a standard deviant.

[mcdawgzy]

Very useful video, thanks for sharing!

[roberte.bainesjr.]

I am currently using standard deviation channels and like them. However, I'm hearing about regression channels which are similar but not the same. Is it correct to assume that you prefer standard deviation channels over regression channels?

[javamochafrap]

Are you talking about looking at a daily or hourly chart (bollinger bands) or any kind of chart ?

[exsxpx]

I use standard deviation on the RSI of a stock. Works well.

[howardchueh]

But the financial series is not normally distributed .. but serially correlated .. prices go from 1, 2, 3 .. not 1 to 3 back 1 than to 2 .. 3 Bollinger band moves are the norm not the exception

[japaneseflea]

What happened at 5:30? Was he edited out or just a glitch in broadcast?

[jeffreyjohnson]

Should std dev (IV) be portrayed by calendar days (365) or trading days (252)? All the brokerages (I believe) use calendar days, with the idea being that information that can affect asset prices occurs just as readily over the weekend as M-F. If that's the case, then volatility on Mondays should be significantly higher than Tues-Fri -- but, empirically, it's not.

[gapperx]

The "Shooter McGavin" Strat?
Lol...sign me up!

[yj]

this is literally all i use to trade lol. its hard to pinpoint sometimes and im not a gajillionaire or anything but staying green over few years now.

[nevinkuser]

That's the most useful trading video I've ever seen.

[lazypeasant]

👎Stock price movements don't follow the normal distribution.