Understanding the History of Market Volatility

[_JWG_]

I'm putting this post out to all the Veteran traders. :smart:

It would be great if you guys could share your experience with highly volatile markets from the past and general rules you use to get through these times.

Any good articles or statistics for reference would be great.

:cheers:
JWG

 

[DaxDestroyer]

Quantifiable Edges: The Most Volatile Market Environment...Ever?

 

[BSD]

Good one DD.



One more:

http://www.trade2win.com/boards/gen...0-trading-choppiest-environment-50-years.html

 

[DaxDestroyer]

I try to learn from you

Good one DD.



One more:

http://www.trade2win.com/boards/gen...0-trading-choppiest-environment-50-years.html

 

[BSD]

Think it should definitely be the other way round seeing as how you've earned one heck of a lot more money from markets than me so far.

 

[DaxDestroyer]

I'm sure, you can "catch" me

Think it should definitely be the other way round seeing as how you've earned one heck of a lot more money from markets than me so far.

 

[BSD]

Going to definitely try my best mate !!!

Still got quite a ways to go tho before I reach such lofty levels.

 

[DaxDestroyer]

If you have a foundation for your trading - an EDGE - everything is possible. Just time and money determine the targets

YOU will do it! If not you, who could?

Going to definitely try my best mate !!!

Still got quite a ways to go tho before I reach such lofty levels.

 

[BSD]

If you have a foundation for your trading - an EDGE - everything is possible.

TOTALLY agree with that !

 

[DaxDestroyer]

I'm sure, you agree as well with the rest of the statement

At least I hope

TOTALLY agree with that !

 

[BSD]

Of course mate !

Dream your life, and live the dream.

Get a robust edge, and trade it with discipline.

 

[DaxDestroyer]

Yepp Und wenn alles nichts mehr hilft

Nimm das Siehe unten

Of course mate !

Dream your life, and live the dream.

Get a robust edge, and trade it with discipline.

 

[BSD]

Yepp Und wenn alles nichts mehr hilft

Nimm das Siehe unten

Haha super !!!

 

[BSD]

And another one:

Four Theories on Three Indices

Deciphering the chaotic price action since Oct. 10 requires great powers of visualization and a big bottle of Advil. The extreme twists and turns are challenging all market technicians to make sense of the massive swings, and to predict future direction with some degree of accuracy.

I've been a pattern guy throughout my career, looking for directional clues in triangles, double bottoms and all those cute formations that add structure to otherwise meaningless market movement. Over the years, I've discovered that, inevitably, seemingly random price bars will eventually transform into perfect order, which is then followed by a new trend, higher or lower.

Without question, the last month of trading has generated the biggest and baddest sideways pattern I've ever seen on the major indices. I guess that isn't too surprising, considering that Market Volatility Index (VIX) shot up to historic highs nearly six weeks ago and then stayed there, instead of backing off when stocks turned higher last month.

Continued...

 

[jm99]

I'm putting this post out to all the Veteran traders. :smart:

It would be great if you guys could share your experience with highly volatile markets from the past and general rules you use to get through these times.

Any good articles or statistics for reference would be great.

:cheers:
JWG

below is part of a post i posted on a different forum about a month ago, some stats re volatile downtrneds fwiw

"we are trading closer to the 29-32 model, in terms of trend and volatility structure. eg volatile downtrends %atr(5) peaked at 10% this week, 5% 00-02, (not included 87 as not bear, just crash, was at 15% fwiw), 4.8% 1974, 4% 1970, 5% 1962, 13.7% 1929

 

[BSD]

below is part of a post i posted on a different forum about a month ago, some stats re volatile downtrneds fwiw

"we are trading closer to the 29-32 model, in terms of trend and volatility structure. eg volatile downtrends %atr(5) peaked at 10% this week, 5% 00-02, (not included 87 as not bear, just crash, was at 15% fwiw), 4.8% 1974, 4% 1970, 5% 1962, 13.7% 1929

Those are some really interesting stats !