I just found the holy grail..still not profitable though

Quote from failed_trad3r:

we are in uptrend. both markets are trending. get it.:cool:
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Failed Trad3r... If you are basing your day trading staregy on volatility then you will always fail.. Let me explain. Volatility is when the market changes its mood from calm to wild... Now we all know that the market doesn't act the same all the time.. A great example is late 2009.. When the market slowed down like crazy.. Now if you are a daytrader then you most likely trade everyday, correct? So why would you base your strategy on something that doesn't happen everyday?

Understanding how the market works is one of the main keys to success in this business..
 
Noob trader: My trend trading strategies in late 2008 made me so much money, but then I got chopped in 2009. What should I do?


Answer: Get yourself a new trading strategy. You were trading volatility, not trend. You're not a trend trader.

:cool:
 
Quote from focusonmoney:

Failed Trad3r... If you are basing your day trading staregy on volatility then you will always fail.. Let me explain. Volatility is when the market changes its mood from calm to wild... Now we all know that the market doesn't act the same all the time.. A great example is late 2009.. When the market slowed down like crazy.. Now if you are a daytrader then you most likely trade everyday, correct? So why would you base your strategy on something that doesn't happen everyday?

Understanding how the market works is one of the main keys to success in this business..
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True
 
Good work. You are not 'there' yet but impressive grasp of concepts. You need to rephrase a lot, people will agree. And unlike what others say, it's not tough to anticipate change in market conditions :cool:

Quote from failed_trad3r:


Exhibit C:

Traders watch news events closely? Why? Because of volatility! They don't know it yet, but they are using an advanced trading strategy. They are using the knowledge of news events to predict volatility! They look into the future and realize a time when their strategy is not functioning optimal, and they ADAPT with a volatility GAUGE.


Conclusion:

If you create a strategy that is profitable, but doesn't have a volatility gauge, it is doomed to stop working one time in the future. Every trading strategy need a volatility gauge. This is the (semi-) holy grail of trading. Predict volatility, then you don't need to predict the markets. I hope you have all learned from my epiphany. :cool: I never knew taking walks outside could be so productive.:)
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Quote from failed_trad3r:

we are in uptrend. both markets are trending. get it.:cool:
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well that would depend on what time frame you are working from. basic really.
 
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