SPA3 Investor - Optional HVMR rule in effect now

Products SPA3 Investor
1

The optional High Volatility Market Risk Rule for the U.S. markets is now in action.

The ATRVE(21) Volatility Indicator for the $COMP Index crossed above 3.5 at the close of trading last night Wednesday, May 18th.

If you are trading the US markets and have included this rule as part of your investment plan, now is the time to take action.

When in effect, this rule stipulates that new entry/BAP signals should be ignored until the market returns to a state of low volatility.

Currently held positions should only be closed when the normal exit signals occur.

You can read more about this rule in the SPA3 Investor course here:

2

Hi David,

Just double checking to see if I have the correct settings for my volatility filter (across the indices)? The (WWS) may be the culprit? I notice my filter didn’t cross the 3.5% (but went very close a couple of times). Are we still in a HVMR for the $COMP, seeing as my volatility filter may be set incorrectly?

Kind regards,
David

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3

Hi David,

The ATRVE uses the 21 period exponential smoothing parameter not the Welles Wilder that you have shown.

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As the ATRVE is below the 3.5 level on both the $COMP and $SPX the Market Risk is considered low for those that have chosen to apply this rule to their US portfolios.

Regards,

David.