Thanks Dustin for replying, I thought Iâm the only one that feels like not much going on now, seems like itâs a great investors market.
traders love volatility, because when volatility is high they make most of their money. it seems reasonable that they should always try to short volatility in addition to their everyday trading if they want to smooth out their equity curve.
I'll trade anything with volume and volatility if I see a setup. This goes for breakouts and reversions.
Dustin I have a couple of questions if you got the time: 1. What period in the past is the most similar to the environment you see today and how long did the dry spell last back then? 2. After the previous dry period, did the your methods start working again or you had to reinvent yourself ? Thanks
Dustin, There have been HUGE trading moves and fairly high volatility over the last 6 months in the high beta coal mining stocks. Have you ever put stocks like ACI, ANR, BTU, CNX, CLF, and MEE into your trading system? Hope things are going well over in your neck of the woods.
This is what it all comes down to for me. Of course I'm always trying to find strategies that work in slower markets, but really my income is derived from volatility. In the future I plan to hedge my income in case of a falling VIX environment...lesson learned.
Well depending on your strat like you say it could go both ways. I don't think anyone's automated programs are quite firing like they did in 2008. But I have tested mine with 2006 volatility as well so I mean it's ok, but it has widened the gap between trading days considerably. I do not have to live on those profits as well, which helps of course.