Do Markets Change?

Palindrome,

Are you talking about market changes from day to day, week to week , year to year, hour to hour, minute to minute?

Why are you asking this question?

Please be more specific?

Why do you care if the market is changing for?? The goal is to make money everyday trading.

 

Her mood changes but her body stays the same

 

The market behavior (price action) doesn't change, but volatility does.

That's the reason why some strategies work all the time and some work only for a short period of time.

 

"the markets have changed" is usually an excuse for the inevitable failure of a half-baked strategy. Even a poor strategy can generate a lucky run of results but blaming its failure on some invisible but so powerful market change is lame.

Leaving aside the tech indices, it would be great to be proven wrong using charts on this.

 

depends on how you define market change.

Yes markets do change.
sometimes two financial instruments are correlated. then suddently they become anti correlated.
sometimes market is sensitive to news. then it become immune to news.
sometimes market is trendy, sometimes not.
sometimes market could be moving in organised manner. then it could change to jerky spiky movement.
etc etc

but one thing never change.
Market always provide opportunities. It is up to us to grab it.

 

Martingale doesn`t change, markets do.

 

the statement is a eternal truth. that is why the market is referred to correctly in the feminine.

 

A good trading system changes too.
A very good one will follow the changes in the market so that the effect of changing markets is more or less neutralized.

 

carrer,

Very true. For example, currently I use a 20 tick stop loss for all my trades, if the market starts trading widly with huge range bars, I will start taking alot of losses. It is my responsibility and job to make a good decisions when this happen. More then likely I will not trade, or change the way I trade.

This is what happen in the /ES market in the beginning of the year with big range bars. Alot of automated (maybe even discretionary) strategies loss alot of money, because the strategies were not tuned or programmed for large price movements.

 

"What has been will be again, what has been done will be done again, there is nothing new under the sun."