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McMillan Volatility Bands Buy/Sell Signals

$40.00
McMillan Volatility Bands

Charting signals and a daily signal scanner based on McMillan's Modified Bollinger Bands for TradingView.com

McMillan Volatility Bands, a charting analysis tool developed by world-renowned options trader and author Lawrence G. McMillan, is an optimized approach to John Bollinger's Bollinger Bands. Leveraging his expertise in options trading, Lawrence designed this volatility-based strategy with a focus on how option prices are calculated – using the Black-Scholes definition of volatility. The McMillan Volatility Bands pricing model assumes a financial asset's volatility should be measured in percentage change rather than absolute value change.

Overview

The McMillan Volatility Bands charting indicator for TradingView will plot the 3 and 4-standard deviation bands around a 20-day moving average, giving you the same parameters Lawrence has used in his own analysis for many years. The user can, however, change the standard deviation value, as well as the moving average length, to their preferred setting. The McMillan Volatility Bands indicator can theoretically be used on any asset and on any time frame.

In addition to the standard deviation bands and moving average trendline, the indicator will also plot Buy and Sell signals based on a well-established trading system used by McMillan in his newsletter publication, The Daily Strategist. The system gives a buy or sell signal when price closes outside the 4-sigma band, then closes back within the 3-sigma band. The 'signal bar' will be colored green or red for a buy or sell signal setup, respectively.

Finally, an arrow indicator will be plotted on the chart where the trading system would actually enter the trade. The arrow indicator is determined when price trades at a designated measurement beyond the extreme of the 'signal bar'. This measurement is an input parameter and can be adjusted by the user. We've chosen the default value of 0.34, meaning the indicator will not give a buy or sell entry until the price moves 1/3 x beyond the extreme signal bar. We’ve found this measurement successfully removes less-valuable trade setups and prevents getting whipsawed by some setups that never really move in your favor.

Parameters

  • ma_length => length of the moving average that the volatility bands work off of
  • outside_sigma => standard deviation of outer volatility band
  • inside_sigma => standard deviation of inner volatility band
  • entry_trigger_cushion => this refers to the percentage of the signal bar's range. The default value is 0.34. This means price will need to move 1/3 (~34%) of the signal bar's range beyond the high (for a buy) or low (for a sell) of the signal bar to trigger a buy/sell entry. This entry plots the arrow on the chart. We have found requiring this extra move in price eliminates many of the less-desirable signals at the expense of entering the better signals a little later.

Chart Examples

Below are some examples of the charts and signals.

McMillan Volatility Bands Signal Scanner

The McMillan Volatility Band Signal Scanner add-on compliments our McMillan Volatility Bands (MVB) TradingView indicator. If you select a subscription with the Signal Scanner access, you will receive an email every morning containing the new MVB buy & sell signals from our curated list of tradable assets. This list includes all liquid futures contracts as well as stocks that trade above-average volume of options. We've found that this group of stocks presents the best candidates for directional trading systems. Note: the scanner cannot be purchased on its own.

Below is an example of a daily file for the Signal Scanner:

Satisfaction Guaranteed

If you are not completely satisfied with your subscription, you may cancel at any time and a prorated refund will be issued based on the remaining unused portion of the subscription.

 

Charting Access

Please supply your TradingView username in the comment section during checkout. Upon purchase you will be added to view the charting signals through www.TradingView.com. Please wait up to 24 hours for access.

SKU: vol_bands_chart
List price: $59.00
Price: $40.00

McMillan Options Mentoring

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
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Testimonials*:  Testimonials are believed to be true based on the representations of the persons providing the testimonials, but facts stated in testimonials have not been independently audited or verified. Nor has there been any attempt to determine whether any testimonials are representative of the experiences of all persons using the methods described herein or to compare the experiences of the persons giving the testimonials after the testimonials were given. You should not necessarily expect the same or similar results.

Performance Results: Past performance results for advisory services and educational products are shown for illustration and example only, and are hypothetical.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

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