What volatility? IF ( and that is a big [size=large] IF[/size] ) your system has been well designed then it should not make any difference at all on your result expectancy.
Maria
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Does a trader want this volatility?
- Thread starter Sky123987
- Start date
What volatility? IF ( and that is a big [size=large] IF[/size] ) your system has been well designed then it should not make any difference at all on your result expectancy.
Maria
Quote from Nope:
I'll second that. I enjoy the volatility, but it is much more stressful when your stop is now an average of 25-30 ticks instead of 15.
Biggest mistake traders make is to think in money. Regard it as a pin machine and try to get the score up as high as possible. Forget that it is money (easier said than done, took me several years), it is only money when it goes out of the trading account and into the bank.
Or as Kenny Rogers sang in the song "The Gambler": don't count your money when you are sitting at the table, there is plenty of time when the dealing has been done".
Some of the best traders that I know have no P&L up on the screen and they do not take a look at it until after the trading has closed for the day.
Similarly I see this in the housing, people go "my house is worth xxx", LOL. Now what if there is a downturn and it is worth half when you try to sell it? Some places may on paper be worth XXX but you cannot even give them away (look at the old castle's in Europe, they gobble up money like no tomorrow and some have been "sold" for the nominal value of $ 1.00 )
Maria
Quote from bali_survivor:
What volatility? IF ( and that is a big [size=large] IF[/size] ) your system has been well designed then it should not make any difference at all on your result expectancy.
Maria
I agree with that, the thing is... it makes a difference on standard dev. even if you are hedged
Your trading rules should be based at least partially on volatility, so it shouldn't matter. If the extra volatility is causing you to set wider stops, you should be trading smaller size. If you CAN'T trade any smaller size (that is, if you're trading 1 contract in futures or forex), you shouldn't be trading at all!
Quote from Sky123987:
Just wondering if in general volatility is good for a trader. I'm kinda against it a bit as I'm still picking up trades, probably a bit more, but not that much more, but I feel I can't put on too much size and my swings are HUGE... as yes they are bigger swing but I don't feel it increases your expected value.
opinions?
great for profits but harder to trade (for the less experienced like myself anyway)
i could tighten my buy signals up more to reduce my intraday drawdown, but i would be sacrificing too much profit.
its about pain versus reward. im lucky to have just started systems trading as alot of EOD systems have just had their worst drawdown in the last 10 years.
i could tighten my buy signals up more to reduce my intraday drawdown, but i would be sacrificing too much profit.
its about pain versus reward. im lucky to have just started systems trading as alot of EOD systems have just had their worst drawdown in the last 10 years.
Quote from traderich:
Today I made 7.11 points
and yesterday 2.243 points.
x1000 shares is very sweet!
Today I could have tripled the amount so could have made over $20k but stuck to my tried and true method.
Amazing how many newbies on this site looking for a handout. lmao.
done blowing your trumpet?