Below is a chart and excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
I call my real-time calculations my Risk Range™ Signals.
One of the big RULEs in my model is that the Risk Range™ Signals RESET when the volatility of the price moves from one of my 3 Volatility Buckets to another. As a reminder, these are the 3 Buckets of @Hedgeye Volatility:
Every Asset Class, Equity, Commodity, etc. has different ranges of realized (historical) volatility therefore they all have different ranges for their respective buckets of volatility, but using the simplest example this morning, here are the ranges for the SP500 and Russell...