Volatility brings almost 600% return in 2 months

Discussion in 'Automated Trading' started by coolraz, Dec 9, 2008.

  1. coolraz


    A friend showed me his ATS system that made $140000 over the last 2 months trading just 4 contracts of ES per turn.

    the system is basically trend following and does well in markets that have large strong moves upside/downside

    In my opinion, he's had such success mostly because of the volatility of the current markets, but I don't know if such volatility would continue....

    What do you guys think? Did we go through two months of extraordinary opportunities and from now on it will be quiet and not as volatile, or is this going to continue for the foreseeable future (hehe mebbe then i should try to copy his system : ) ?

  2. i think the volatility will continue for the foreseeable future. the us govt is creating MASSIVE waves in the ocean with all the crap they are doing and it won't subside for years. who knows if the opportunities will be as big as they have been since there has already been a good amount of deleveraging but we will see...hopefully it does :D
  3. Volatility will likely decrease somewhat from Sep. - Nov. levels, and chop will increase, as it already has for the last 4 weeks. This will likely result in stops being taken out more often (unless, like me, you have a system specifically designed to trade chop).
  4. Trend following systems work when there are strong trends and fail otherwise.

    A trend system that worked well in October and November's volatility would not have worked very well in August's narrow range.