How to predict if a market will be volatile? | Traders Hideout


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How to predict if a market will be volatile?

  #14 (permalink)

Salt Lake City, Utah
 
Trading Experience: Beginner
Platform: Jigsaw, NinjaTrader8
Favorite Futures: ZB
 
Posts: 477 since Apr 2016
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The volatility often comes in cycles. So ATR and ADX can give you some idea of what kind of ranges you can expect to see.

My experience has been that a strategy that only makes money when things are moving or only makes money when we are range bound is bound to have problems for you long term. Otherwise you end up with really long drawdown periods that just mess with your head. It's better to work on finding strategies that work in all markets, and then when you get that outlier that you know is turning into a crazy day you step on the gas pedal.

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