> For the complete documentation index, see [llms.txt](https://brainautotech.gitbook.io/brain-auto-tech/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://brainautotech.gitbook.io/brain-auto-tech/trading-strategies/volatility-based-strategies.md).

# Volatility-Based Strategies

* **Volatility Breakout:** Buy when volatility increases and the price breaks out of a narrow trading range, anticipating a strong price movement.
* **Volatility Scaling:** Adjust position sizes or trading parameters based on market volatility to manage risk and optimize returns.

<figure><img src="https://1285871847-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTZL3YwvNKFilI7zPX2Ob%2Fuploads%2FPa3dLAF5fxEWa3i2tBLA%2FWhatsApp%20Image%202024-04-21%20at%2017.53.16.jpeg?alt=media&amp;token=9b59804b-6ffb-4837-8f17-1d03d4084306" alt=""><figcaption></figcaption></figure>