Thanks for this, just discovered Kindle Cloud reader, added it to Chrome and bought the book. In minutes. Fearlessly.


Cheers

Pure speculation on my part, but I suspect Ed Seykota would override his systems whenever volatility got too high. Now, he trades long term trends, but the effects of heightened volatility are the same.

1. Volatility presents a lot of opportunity if you are on the right side of the trend, but you better cut your losses fast if you are on the wrong side of it.
2. A very volatile market makes it more likely that you will be stopped out even if you get direction right.
3. To compensate for the additional risk of being stopped out, you could move your stops out further.
4. Of course once your stops are further away, you need to scale back your size to get your risk back to its prior levels.
5. With the smaller size, markets need to move further in order for you to make a decent gain with respect to your risk.

Based on the above, you can either trade same size with the same stop, but need to remember the pitfalls, or you can reduce scale back size and use wider stops. To me it just seems that trading in a high volatility environment just not justify the downsides. Of course, high volatility could precede a major crash and that represents the best opportunity to make a lot of money in a short amount of time, but unless you time it exactly right, you run an elevated risk of being stopped out or dying from death by a thousand cuts before the actual crash happens.

Excellent points, I was working last 3 to 4 months on developing a TREND following system based on 2 hr. charts and when I thought I am ready to trade overnight action became wild so I changed my time frame to DAILY for major swing holding and 25 mins for intraday, with my day job and other mundane activities I might not be able to watch the market all day so I started the idea of 2 hr system but I got to adjust once market context changed (I was expecting this increase in volatility after the rate hike but market fooled me last year by ignoring comfortably). Now, it looks like even 25 mins is not enough but I haven't' achieved that edge to completely throw out my bias and trade what is in front of me and change my opinion so quickly...maybe one day I will reach it till then struggle continues...

Does it have text-to-speech option for android or kindle fire?

Glad I didn't enter long yesterday, today I put a limit order to buy YM at 15780 with trailing limit of 100 points.

Still order is there not confident but leave it there...INTERNALS are as bad, VOLSPD and CTICK hugging lows