Risk Disclosure

Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View full risk disclosure.

Dorschden Swing Volatility Solver


The Dorschden Swing Volatility solver calculates the distance between swing points (the distance from swing top price to swing bottom price) as a way to measure volatility.  Swing point prices are derived from the SiSwings Indicator, included with BloodHound.

Parameters

Output

Swing Parameters

Targets

Video Tutorial

This video is from our weekly Workshop titled Solvers 12-13, on Sep 26th, 2012.
For more benefit please watch in full screen mode, as this video is recorded in HD.


Examples


Example 1A: The Basics

This demonstrates the basic function of the Dorschden Swing Volatility solver.  This Solver measures the length price moves from swing point to swing point to determine if there is enough price movement to trade with.  It can be used to detect range bound choppy market action.

  • Add the Dorschden Swing Volatility solver
  • Set Number of Swings to 1
  • Set Target Volatility to 30 Ticks

Note in these charts that the Long & Short Threshold in the Signal Properties are set to 0.99.  When price moves more than 30 ticks from the previous swing point an output of 1 is given.

Example 1B: The Basics

This demonstrates the basic function of the Dorschden Swing Volatility solver.  This time the Solver will be set to average 2 trend length together.  The average length must be equal or greater than 30 ticks for an output of 1 to occur.

  • Add the Dorschden Swing Volatility solver
  • Set Number of Swings to 2
  • Set Target Volatility to 30 Ticks

Note, in these charts the Long & Short Threshold parameters (under Signals) are set to 0.99.    When 2 trend lengths average more than 30 ticks an output of 1 is given.  For example:

  1. Swing A(15ticks) + swing B(35ticks) = 50 / 2 = 25 ticks average therefore no signal (BH output is less than 1).
  2. Swing B + C = 61 / 2 = 30.5 ticks average for an output of 1.   Swing D + E = 60 / 2 = 30 ticks average for an output of 1.