You should look at volatility as an imperfect estimate of risk. I don't know of any technical indicators/rules of thumb/etc which can guide your risk management. Experience and a deep understanding of the nitty-gritty of the mkt are the only ways I know of which can give one insight into risk.
I don't know why, but when reading this title I could not help imagining Warren Buffet being very bored for some reasons, pop in ET and reading your title thread, and automatically laughing and saying "are they making a joke about me".
I imagined that trading call spreads beats Buffet , but I did not know by how much , I was waiting for back tests. None of the baboons responded cause I know the intelligence level here , so I had to do it myself. If you start with 20k , it produces 9,000 a year without compounding
If Warren Buffet was really bored and looking for something to cheer him up, he'd be laughing under his table, and say "when is this joker going to try it with real money and find out what really happens in practice".
Keep us posted about the upsides , and most importantly the downsides! The upsides in trading are not really the issues, the real ones are the downsides.
emotions down side , trying to take smaller profits , greedy for early profits ,fear of missing out on profits It is not the system , it is usually the idiot trading this system .me http://www.businessinsider.com/colin-camerer-wins-genius-grant-2013-9?IR=T