In this study, we aim to implement a Volatility Targeting technique in Python from scratch. To do this, we will use a simple but effective methodology.
Although the general public tends to have a misconception about one of the most common uses of volatility, which is to assume its predictive effect on future volatility or asset price movements
In this article, we will explore the most widely used volatility estimators in trading. We will explain both their advantages and limitations, and provide any other relevant information.
In this upcoming series of articles, we will delve into the concept of volatility. We will begin by studying its theoretical framework in detail, then explore its causes, effects, and consequences.