The Flashing Indicator. Combining Correlation & Volatility to Generate Trading Signals.

Creating a Volatility-Correlation Indicator for Trading.

Exogenous factors have to be included in our trading strategies. Consider using a statistical property as a trading signal only to find that another outside factor is also contributing to the asset’s movement. Would you consider including it? The reasonable answer should be yes. 

In this article, we will look at the previous intuition from a more technic…