Why some traders are bitching about the lack of volatility?

Quote from Halal Burger:

The reason why there's so many people complaining about a lack of volatility is because they are dumbass losers who trade a moving average cross-over on a 5min chart.
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Well let’s see...

I am a dumbass – I’ve said so many times

I do use a 5 min chart

I do use an EMA

I do lose

I do dislike the fact that after the first couple of hours – most of my stocks have gone lethargic lately



Damn – Ya got me :p


RN
 
Quote from Daal:

Furthermore I dont see more leverage as any more riskier than the simple fact that one was trading in late 2008 where no one knew what was going to happen. You might have had a smaller position trading then but your stock could open at $0 or gap up/down huge(as it happened with numerous financials). There was a reason why the VIX reached 80, and that was because the world was a dangerous place back then so saying 'im not comfortable' is not a good reason not to lever up, 80 VIX and the financial system on the brink shouldn't make you comfortable either
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A non-leveraged long position can't lose more than 100%, so it's inherently less risky than a leveraged bet. Long 50% at VIX 80 is less risky than long 200% at VIX 20.

There are liquidity constraints. Volatile environments have more reward per unit risk, and unique opportunities that aren't available in low volatility environments.

Increasing size does not increase risk/reward ratios. And it is risk/reward ratios that determine returns for a given risk tolerance. Given that all strategies have an upper maximum return, due to risk of ruin, someone trading optimally cannot increase returns by increasing leverage.
 
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