Comment on Live Example -1

Sudharsan commented on 04 Oct 2018, 03:58 PM

Hello Karthik,

Thank you for the wonderful explanation. In some cases, I have observed that the std. error went down to -4 as a result of certain events, case in point being YESBANK from Sept 21 to 28, was a drastic drop.

Do you recommend going long when I see the error being much lower or higher than -2.5/2.5 trigger or do you think i should avoid it due to volatility. ( the error has gone back to around -2 now so if i took the trade I would have profit). On the other hand, If i took the trade at -2.5 I would have lost money going down to -4. Any idea if there is any other parameter to look at to avoid this?

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