How do you determine if the market is volatile? | Forex Factory

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How do you determine if the market is volatile?

  • #1
  • First Post: Jan 1, 2022 12:49am Jan 1, 2022 12:49am
My trading strategy works best during quiet times and I achieve consistent profits until a big trending day comes and i give back almost all of profits. Is there any indicator or method to determine if the market is volatile? I have recently started checking the calendar for economic news that is high impact and not trading on these days. If you have any suggestions I would really appreciate it, thanks.
  • #2
  • Jan 1, 2022 9:55am Jan 1, 2022 9:55am
Quoting beechboy
My trading strategy works best during quiet times and I achieve consistent profits until a big trending day comes and i give back almost all of profits. Is there any indicator or method to determine if the market is volatile? I have recently started checking the calendar for economic news that is high impact and not trading on these days. If you have any suggestions I would really appreciate it, thanks.
Maybe the solution is not about volatile market but more about your money managemnt or strategy ?

If your strategy works only during low vol day or ranging days, then you only solve 50% of the equation

- Keep your working strategy, and add a trending strategy to profit from big trending days
- Try to only trade during low vol session (Asia)
- Are you overtrading ? if you look it all during trending days, then you have to fix your money management
COT: The precious data ignored
  • #3
  • Jan 1, 2022 10:18am Jan 1, 2022 10:18am
IMHO, Also watch out for breaking news and geopolitical events that may impact strongly either for for or bad on some currencies leading to trend.
Without despair & distraught, focus on Patience to FRESH MOTiVES.
  • #4
  • Jan 1, 2022 11:56am Jan 1, 2022 11:56am
Quoting beechboy
My trading strategy works best during quiet times and I achieve consistent profits until a big trending day comes and i give back almost all of profits. Is there any indicator or method to determine if the market is volatile? I have recently started checking the calendar for economic news that is high impact and not trading on these days. If you have any suggestions I would really appreciate it, thanks.
Hi Beechboy,

The answer is average volume, or you can use the average size of candles if you don’t want to pay for market data. It’s about the only way I found that works after being in this game for20 years.

Good luck
Trading thin liquidity at the boundary of the charts
  • #5
  • Edited 10:17pm Jan 1, 2022 5:51pm | Edited 10:17pm
Quoting kuroro001
{quote} Maybe the solution is not about volatile market but more about your money managemnt or strategy ? If your strategy works only during low vol day or ranging days, then you only solve 50% of the equation - Keep your working strategy, and add a trending strategy to profit from big trending days - Try to only trade during low vol session (Asia) - Are you overtrading ? if you look it all during trending days, then you have to fix your money management
It could be money management i use a 2:1 risk:reward. When the usd trends strongly I lose multiple trades in a row for the same reason, a high momentum trend.I will work on a trend trading strategy and only trade the asian session with my low vol strategy. Thanks
  • #6
  • Jan 1, 2022 8:39pm Jan 1, 2022 8:39pm
Quoting RickM
{quote} Hi Beechboy, The answer is average volume, or you can use the average size of candles if you don’t want to pay for market data. It’s about the only way I found that works after being in this game for20 years. Good luck
Thanks I will look into that.
  • #7
  • Jan 1, 2022 11:29pm Jan 1, 2022 11:29pm
Quoting beechboy
{quote} It could be money management i use a 2:1 risk:reward. When the usd trends strongly I lose multiple trades in a row for the same reason, a high momentum trend.I will work on a trend trading strategy and only trade the asian session with my low vol strategy. Thanks
Why Exactly 2:1?? why no more? why no less? dont be rigid with your targets, you are never going to be 100% sure how much the market its going to move (no one knows this answer for real)

Also, and correct me if im wrong, from your explanation you are trying to counter trade the market, looking for reversals and you lose when the price keep moving up/down on those moment that you are thinking that its turning back; either that or you are placing your trades too early/late or your targets are not right from the get go

Also good idea to not be looking for trades during news time, let the market settle and dont be caught in the middle
  • #8
  • Jan 2, 2022 5:39am Jan 2, 2022 5:39am
Quoting havo
{quote} Why Exactly 2:1?? why no more? why no less? dont be rigid with your targets, you are never going to be 100% sure how much the market its going to move (no one knows this answer for real) Also, and correct me if im wrong, from your explanation you are trying to counter trade the market, looking for reversals and you lose when the price keep moving up/down on those moment that you are thinking that its turning back; either that or you are placing your trades too early/late or your targets are not right from the get go Also good idea to not...
JFC what a ramble. Poor fuck asked a simple question and you give him an online probing worthy of requiring a medical waiver, and start concocting fantasies based on scraps of info. Less sugar in your cereal, please.
Congratulations ScalaFX for coming out of the closet!
  • #9
  • Jan 2, 2022 11:11am Jan 2, 2022 11:11am
You have to read about currency trading. If you want me to share some books with you then send me a private message.
Cheers!
Risk Management is of utmost importance!
  • #10
  • Jan 3, 2022 5:18am Jan 3, 2022 5:18am
Maybe if, you use a bigger timeframe to filter your trades and see where the price is heading could solve your volatility problem. Try to use Weekly and Daily timeframes for direction and learn all the fundamentals about the Countries Macroeconomics for the currencies you are trading.
Looking for profitable short term trades ...|
  • #11
  • Last Post: Jan 3, 2022 8:21am Jan 3, 2022 8:21am
Quoting nubcake
{quote} JFC what a ramble. Poor fuck asked a simple question and you give him an online probing worthy of requiring a medical waiver, and start concocting fantasies based on scraps of info. Less sugar in your cereal, please.
I feel that my post wasn't complicated at all and the "scraps of info" like you say its to make him think about possible weak points in his approach to trading, nothing more.. if he wants to go deeper he can make more specific questions later, thats like ANY normal conversation/research goes between people =)

The best part is that, just from the conditions he was losing money i was spot on when i told him that he is probably was trying to trade swing high/lows (The OP made an early thread posting about it) check it out on the screenshot

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Also.. So much hate out of the blue.. who are you, why?
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