NexusFi: Find Your Edge


Home Menu

 





Do you change your strategy based on volatility?


Discussion in Emini and Emicro Index

Updated
      Top Posters
    1. looks_one syswizard with 9 posts (1 thanks)
    2. looks_two OccamsRazorTrader with 5 posts (2 thanks)
    3. looks_3 kevinjd with 3 posts (0 thanks)
    4. looks_4 HiLatencyTRDR HLT with 1 posts (0 thanks)
    1. trending_up 3,479 views
    2. thumb_up 3 thanks given
    3. group 10 followers
    1. forum 21 posts
    2. attach_file 2 attachments




 
Search this Thread

Do you change your strategy based on volatility?

  #21 (permalink)
 
syswizard's Avatar
 syswizard 
Philadelphia PA
 
Experience: Advanced
Platform: Multicharts
Broker: Ironbeam, Rithmic
Trading: Emini ES / NQ / CL / RTY / YM / BTC
Posts: 344 since Jan 2019
Thanks Given: 20
Thanks Received: 146


kevinjd View Post
Also i heard (from a good futures trader) that when you trade futures , because of the margin , you can take trades when the risk/reward is above one at least.

For scalping futures I think you must go to 2:1 at least. For Swinging....maybe 1:1 or 1.5:1.

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Better Renko Gaps
The Elite Circle
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
ZombieSqueeze
Platforms and Indicators
Exit Strategy
NinjaTrader
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
38 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
GFIs1 1 DAX trade per day journal
19 thanks
The Program
18 thanks
  #22 (permalink)
RickM
Brisbane
 
Posts: 14 since Dec 2018
Thanks Given: 3
Thanks Received: 28

Maybe conside a system that trades more often a day based on lower volatility. Volatility is overrated in my books as ES moves enough if you also lower your time frame you are trading.
ScalpLikeMe View Post
Let's assume you are trading a system with a proven edge and an overall positive expectancy. Under the current market conditions, you can expect to earn anywhere from 2-3 points (8-12 ticks) on the ES with this system. You trade using the 2-min chart, you take no more than 1-2 trades per day, and you are trading with 4 contracts on each trade.

Eventually, the market is going to become less volatile.

You backtest your strategy during a year where volatility was dramatically lower. You can identify your same patterns and your same edge, but the market is now only expected to move 1-1.5 points (4-6 ticks) in your favor based on your system.

During this period of lower volatility, would a trader simply increase their contract size in order to make a similar amount of money per trade? Would this trader trade with say, 8-12 contracts per trade, rather than 4?

With futures, do you reach a point where trading with more contracts actually does more harm than good simply because the volatility is lower, and you can’t get filled as efficiently with more contracts? Or is entering with a large amount of contracts not an issue with the ES market?

Or would this trader simply need to learn to trade their strategy on a higher timeframe in order to keep their daily profit goals consistent?


Reply With Quote




Last Updated on August 21, 2022


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts