Trading during high volatility

[Dollardogs]

Past couple weeks have been nuts and murder on my system. I tried using my usual stops on a few of these days where the initial balance was double or even triple normal size, and it just cuts me to ribbons. The ideas were right, and even a 1.5 sized stop woulda allowed the trades enough breathing room to survive.

Anybody here halve their size and double their stops to account for these kinds of conditions? Wondering what kind of strategies people tend to use.

 

[Scataphagos]

Sorry about your troubles...

Suggest you read my posts (rants?) on Price TA... "support" and "resistance". Statistically, stops should be placed just outside them, however large of stop that requires (dependent upon how close your entry was to them).

 

[ironchef]

Past couple weeks have been nuts and murder on my system. I tried using my usual stops on a few of these days where the initial balance was double or even triple normal size, and it just cuts me to ribbons. The ideas were right, and even a 1.5 sized stop woulda allowed the trades enough breathing room to survive.

Anybody here halve their size and double their stops to account for these kinds of conditions? Wondering what kind of strategies people tend to use.

I only day trade in sim, so my advice needs to be taken with a grain of salt:

I suggest you either stay out or cut down on the time you stay in a trade when things get too volatile.

I found, in the past two weeks, things moved a lot faster and more volatile. So in my paper trade, I cut the dwell time I stayed in the trade by a lot. My profitability and win rate actually were better.

 

[Dollardogs]

Sorry about your troubles...

Suggest you read my posts (rants?) on Price TA... "support" and "resistance". Statistically, stops should be placed just outside them, however large of stop that requires (dependent upon how close your entry was to them).

Thanks! I'll check those threads out. It was made even worse by a fatfinger that cost me my best win of the week. Conditions got me rattled I guess. Looking forward to the weekend to clear my head.

 

[Dollardogs]

I only day trade in sim, so my advice needs to be taken with a grain of salt:

I suggest you either stay out or cut down on the time you stay in a trade when things get too volatile.

I found, in the past two weeks, things moved a lot faster and more volatile. So in my paper trade, I cut the dwell time I stayed in the trade by a lot. My profitability and win rate actually were better.

I hadn't thought of it as a time problem, that's interesting. I'll play around with that see what I come up with. How long you been paper trading out of curiosity?

 

[Laissez Faire]

Some of the sessions these last few weeks have been too wild for newbies and even where more experienced players would choose to stay out.

Personally, I sized down to micros in start of the week, but increased size a bit yesterday as the pace was more controlled and predictable.

I prefer volatility a tad lower than some of the days we recently had.

 

[Wide Tailz]

Past couple weeks have been nuts and murder on my system. I tried using my usual stops

Many professional systems from a few generations ago used volatility filters to screen entries. A descending ADX line, contracting bollinger bandz, and the vix can show it with a substantial lag.

Option traders seem to like shorting volatility while neutralizing directional exposure, collecting the premium at the same time.

And simple guys like me wait for volatility to die out, then pick up again, hoping to CATCH A TAIL! You know, the far edge of a bell curve that is very different in extreme moves compared to random action seen during normal science.

For you, just wait until the average true range is below a certain level (disable your buy button if you have to). You can also set your stops and position size based on this amount, for risk management.

 

[Wide Tailz]

Sorry about your troubles...

Suggest you read my posts (rants?) on Price TA... "support" and "resistance". Statistically, stops should be placed just outside them, however large of stop that requires (dependent upon how close your entry was to them).

I sincerely mean you no harm, but the more you show how good HSR is, the more false breakouts we're gonna see. Stop posting the secrets, for the love of benjamins.....

 

[Scataphagos]

I sincerely mean you no harm, but the more you show how good HSR is, the more false breakouts we're gonna see. Stop posting the secrets, for the love of benjamins.....

1. What is "HSR"?... and 2. False breakouts are among your best friends.!!

 

[ironchef]

I hadn't thought of it as a time problem, that's interesting. I'll play around with that see what I come up with. How long you been paper trading out of curiosity?

1 year. Positive expectancy.