ARTICLE SYNOPSIS ...Has Volatility Lost Its Edge? by Mark G.Levey Does volatility still offer the same advantage it once did in trading the Standard &PoorÕs 500 index? HereÕs a followup to previous STOCKS & COMMODITIES articles. From a statistical standpoint, assuming an even chance of loss or gain on an investment, low-volatility investments offer significantly higher returns than do high-volatility strategies. A low-volatility trading system beats a high-volatility system 70% to 80% of the time when given the same sequence of trading results. In winning systems, however, game theory shows that once the proba...