There is maybe hundreds of strategy posted on FF. But I see very few of them having their proper implementation. So most of the time trader are placing trades whenever their strategy gives them signal, but ignore market volatility. Volatility is the most important variable in the market when it comes to short-term trading. It is more important than the strategy itself.
An effective implementation of a given strategy would cover these questions:
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An effective implementation of a given strategy would cover these questions:
- When to actually execute the strategy?
- When not to execute the strategy?
- How should be market volatility when executing the strategy?
These questions are more important than questions like where to place stop-loss and target orders, or when to open a trade. If you do not answer to (1), (2) and (3) properly, it will be difficult to make it in a long run no matter how perfect your entries are.
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I like the intraday volatility predictability when there is no unusual event like the brexit thing...