Low volatility is a problem

I'll just get straight to the point. My strategy is an SnR based idea on 4 hour charts that makes roughly 30-35% per month realised. I've backtested it from 2008 til now.

However in 2007 volatility spent most of the year low. I measure volatility with ATR set to 24. I consider volatility low if ATR24 is below 80 on the daily charts.

This low volatility kills my system, sure I'm profitable, but only 5-10% per month (which I don't consider enough as a predictor of future returns and enough to eliminate any errors).

I tried reducing my profit targets and stop losses, but that still only netted around 12-13% per month.

My question is, has anyone had experience dealing with low volatility when it reduces the money made on their system, AND would they mind sharing what they did about it?

p.s. I'm not big on sharing my system with the world as I'm sure you'd understand, please don't post just to get a free system. I'm happy to nudge people in the right direction if you're working on a similar SnR strategy however.

Declining volatility is a problem for any trader who remains in the game long enough, when volatility is high, making money is easy. Instead of reducing targets you should look at maybe increasing time-frames and holding periods, this has worked for me.

Thanks Craig. I'll test that out.

Still happy to hear more ideas, I'll keep a list

...one other thing, I didn't just increase holding periods on existing strategies, I actually had to find other strategies which worked in the low volatility regime.
But I found, in general, that what I said above applied. Your stuff may behave differently, but I just thought I'd mention this.

great advice craig

You're wanted on another thrread. Please pay attention.