Why is volatility such a big deal?

Hello,

I keep reading notes where people like more volatile pairs as they provide better risk/reward ratio. If one uses leverage properly, even less volatile pairs can have the same impact.

I wonder why people love absolute volatility so much?

I think many short term traders equate volatility to opportunity while longer term traders may prefer less volatile pairs. If you are a scalper having a market wiggle up and down gives you plenty of chances to trade in a short period of time.

I don't see any way that high volatility would reduce your R/R ratio especially if you subscribe to the idea that your stop should be outside of 3ATR. I do agree with you that if you use volatility based position sizing a less volatile pair can yield the same profits as a more volatile pair but again, this is more likely to occur on longer term trades.

Welcome to Forex Factory.

If you detect a Bull move....but you are in a sell trade... you´ll change quickly your position and make profits to recver you last lose...
this is a simple example, you can do MUCH more.. See Trading System area

Best Regards,
Marcelo Marques