Hi,
what is everyone's opinion on incorporating the volatility and beta of an asset as filters into their trading system?
For instance, are stocks with high historical volatility better candidates to use in a trend following system than stocks with low volatility.
Or do high volatility stocks have a greater tendency to revert to their mean than low volatility stocks?
Ditto for the beta of a stock.
Thanks in advance.
what is everyone's opinion on incorporating the volatility and beta of an asset as filters into their trading system?
For instance, are stocks with high historical volatility better candidates to use in a trend following system than stocks with low volatility.
Or do high volatility stocks have a greater tendency to revert to their mean than low volatility stocks?
Ditto for the beta of a stock.
Thanks in advance.