is this what its like

Discussion in 'Index Futures' started by rdm239, Jul 25, 2007.

  1. rdm239


    to trade when there actually vol in the mkt?
  2. Trading Rules:
    *focus on one market (YM,ES etc.)
    *focus on one time frame (trade the moring hour or afternoon etc.)
    *focus on one indicator or non inidcator method (TA, price action, MACD, CCI etc.)
    *focus on one chart period (1,5,10 etc.)
    *Goals...know how many points you want per day and then leverage towards what you want $$ per day...REMEMBER..."goals bring gold"...go for it!!!...these are my opinions
  3. GTS


    Did you really think you post was so good that you need to put it in four different threads?
  4. The trick is to reduce the number of contracts/shares you trade
    when the markets are volatile.
  5. Actually it depends upon the strategy.

    For example, if your using a non-volatility method...

    Yes, you should reduce the position size to better manage the risk exposure when markets have high volatility.

    However, if your using a volatility based strategy (I do)...

    You should trade your normal position size during volatile price action and reduce the position size to better manage the risk exposure when markets have low volatility.

    My point is that if a trader gets to the point that they can recognize if the price action has high volatility, low volatility or normal volatility as it is occurring...

    Position size management should be at the top of the list of priorities.

    Further, you should know statistically which type of volatility conditions your methodology performs the best or worst to confirm the difference in position size management that results from volatility analysis.

    Also, keep in mind that the word worst doesn't imply losses because it just may imply low profits or more difficult trading to get profits.

    Last of all, volatility analysis is the preferred choice in comparison to volume analysis even though they have some similarities in the analysis.

    However, if a trader wants to resolve some of the weakness associated with Volume Analysis or trading instruments that don't have volume or the volume is not providing useful info...

    Volatility Analysis is the path to take.

  6. empee



    How did you get a nickname of Mark from
    Nihaba Ashi?

    haha, just kidding you took out the part in your .sig that says its a candlestick term :)
  7. yup...just like the late `90`s where we displayed monster gaps & 200 point whpsaws.........some of the best trading conditions one will ever see...........pure nirvana.