So how does the current volatility affect your trading style

[Shanghai]

I generally swing trade equities using channels and moving averages to pick entries and exits, using oscillators to fine tune. I'm pretty much sat out at the moment as with movements of +/- 3% in a day you end up trading the index rather than the equities themselves and that's not what I'm about. I can allow for volatility in my stops but then the reward / risk is not enough.

So how is it for you? Does it give you better opportunities or more risk?

 

[FXSCALPER2]

I generally swing trade equities using channels and moving averages to pick entries and exits, using oscillators to fine tune. I'm pretty much sat out at the moment as with movements of +/- 3% in a day you end up trading the index rather than the equities themselves and that's not what I'm about. I can allow for volatility in my stops but then the reward / risk is not enough.

So how is it for you? Does it give you better opportunities or more risk?

This is a very good question. I have a friend who trades the DOW and DAX. We were discussing this issue yesterday. I love volatility. The risk goes up but so does the reward. You can catch hunderds of pips while probably reducing your hit rate. But it is not how many times you win that matters but how much you win on the ones that go in your favour. Trading is harder but more profitable when the markets are going crazy. What makes it beautiful is the fact that you don't have to worry too much about TA when this happens. You can actually rely on the cliche 'cut your losses and let your profits run'.

 

[barjon]

yeah, me too shanghai

I trade equities off eod and generally need at least three daysworth of correction before entering the fray. That sort of correction has been a rare beast lately and for the few that came I've had to pass up on most since the risk has been too great.

So the main account has been pretty quiet, but I've been having fun in the "play" account (which I haven't had to top up recently ).

good trading

jon

 

[barjon]

I think it means you have to wait for more confirmation in the price action before you act on a trade idea. But that's absolutely fine because it's no biggie missing the first 50 points of a move in eur/jpy when the range is consistently north of 300 points on the day while it's all booting off. So personally I think these are good conditions for my particular style.

My main problem stems more from the fact that I'm not at liberty to just sit and concentrate on the screens all day any more. I wanted a job as head of a trading desk, and I got one, but of course there's a bunch of stuff that goes with that. All diverse, interesting stuff, but much of which takes me away from trading, either physically, when I'm in meetings, or mentally, where I'm having to concentrate on something else. I'm finding that a bigger challenge than these markets to be honest.

GJ

If you don't mind a "granny and eggs" comment, gamma, don't fall between two stools.
Reduce trading to a hobby activity for a while and concentrate on your job.

cheers and good jobbing

jon

 

[arabianights]

I'm taking bigger profits on winning trades and greater losses on losing ones, as it's a bit harder to pick tops or bottoms; because you have to allow greater drawdowns due to the greater noise your losers hurt quite a lot when you do admit defeat. However, markets are moving so much that when you have a winner you make a heck of a lot more.

 

[FXSCALPER2]

I think it means you have to wait for more confirmation in the price action before you act on a trade idea. But that's absolutely fine because it's no biggie missing the first 50 points of a move in eur/jpy when the range is consistently north of 300 points on the day while it's all booting off. So personally I think these are good conditions for my particular style.

My main problem stems more from the fact that I'm not at liberty to just sit and concentrate on the screens all day any more. I wanted a job as head of a trading desk, and I got one, but of course there's a bunch of stuff that goes with that. All diverse, interesting stuff, but much of which takes me away from trading, either physically, when I'm in meetings, or mentally, where I'm having to concentrate on something else. I'm finding that a bigger challenge than these markets to be honest.

GJ

Will you give me a job as a directional FX trader at the firm?

 

[wasp]

Not noticed much difference really....

 

[barjon]

haha - not really an option. And anyway not something I want to do. These are fascinating times to be involved with the markets.

ok, gamma - then keep juggling them balls :cheesy:

jon

 

[Rhody Trader]

I'm taking bigger profits on winning trades and greater losses on losing ones, as it's a bit harder to pick tops or bottoms; because you have to allow greater drawdowns due to the greater noise your losers hurt quite a lot when you do admit defeat. However, markets are moving so much that when you have a winner you make a heck of a lot more.

That's exactly the point. In order to hold to your risk parameters you need to cut back on your trade size when the volatility rises like we've.

I had a frustrating ride on Tuesday, but brought it all back Wednesday, and then some.

 

[Mathemagician]

My trading program automatically and dynamically changes size in response to a proprietary measurement of market risk and the net result is that my dailly percent swings are indistinguishable from any other time period. So, no perceptible changes other than that size is down and capacity is up.

jj