Trading lessons learned from current volatile markets

trendie

Legendary member
6,536 1,129
Have the recent several weeks taught you anything about your trading?
Have you adjusted your normal rules for the recent high volatility?
Are you using same rules, or are you behaving differently with respect to markets?

My experiences are that:
1: I can trade pretty much off the 1-mins for the time being.
2: Because of the volatile moves, I can comfortably take moves lasting 20-30mins for a decent run, instead of normally hours.

I think the current situation is a good hothouse for accelerated trading, and seeing results immediately.
You take a trade, and you are almost immediately right, or wrong.
You just take the hit, or the profit, and wait for next trade.
I think a slower market messes with your mind, and you have too much time to second guess yourself, and undermine your thought processes. In current situation, its immediate feedback win or lose, and no time to ponder before the next trade comes along.
This, I think, makes it a good training ground, to build confidence.

Any insights from others?
 

tomorton

Legendary member
8,143 1,227
I normally trade long-term off daily charts only. My entries are always order-driven, not live, and typically orders are set to give an entry at breach of a lower high in an uptrend or a higher low in a downtrend - looking to ride resumption of the underlying trend. The viable stop-loss position of course is the opposite high/low of the set-up bar that identifies the entry price. With daily ranges being so wide right now, its impossible in many markets to type in a position size which will involve a loss of an acceptably low percentage o account capital. So I'm not long-term trading at all, right now.

Profits are coming from opening range break-outs, which are working exceptionally well.
 

barjon

Legendary member
10,604 1,742
I normally trade long-term off daily charts only. My entries are always order-driven, not live, and typically orders are set to give an entry at breach of a lower high in an uptrend or a higher low in a downtrend - looking to ride resumption of the underlying trend. The viable stop-loss position of course is the opposite high/low of the set-up bar that identifies the entry price. With daily ranges being so wide right now, its impossible in many markets to type in a position size which will involve a loss of an acceptably low percentage o account capital. So I'm not long-term trading at all, right now.

Profits are coming from opening range break-outs, which are working exceptionally well.

Very similar with me and with my equities the opening gaps are often quite severe momentarily, as are spreads, so there’s plenty of slippage in stops and/or that frustration of price going where you want after those fatal spikes. Still doing a bit though.

On the day trading stuff, mostly Nasdaq and FTSE, even the minor pull-backs in a decent move are too much for my courage. So I’ve really abandoned all my clever (sic) set-ups and I’m just leaping aboard momentum bursts when I see them - often wrong and (mostly) escaping without damage, but catching some decent moves. Means I only get half or less of a major move but keeping on the right side. Not seeing 1 point spreads anymore of course!!
 
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