Gregoire Channel Width
This serves two purposes:
1) Volatility adjusted position sizing
2) Options buying/selling
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The formula for volatility adjusted position size is: (account value * risk) / (GC Width / Entry price).
For example, let's say we have a $15,000 account size and want to risk 2% on a TQQQ trade. The GC Width is $8.77 and entry is $167.59.
That gives us a position size of: (15,000 * 0.02) / (8.77 / 167.59) = $5,732.84. Our stop would be around the middle of the channel, in this case.
We use this so we avoid getting blown out in fast-moving markets, yet still make enough for slow moving markets. Too much risk destroys accounts!
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The green and red colors indicate areas to buy and sell options. RED = sell options, GREEN = buy options.
Options are priced according to volatility. We want to buy them when volatility is low, and sell them when volatility is high. These can also be used as take-profit areas: we buy options on the green and close for profit on the red areas, etc.
Changed color scheme: GREEN means expansion, RED means contraction.
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact gregoirejohnb directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
Disclaimer
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact gregoirejohnb directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.