Rabu, 03 Maret 2010

Does Lower Volatility = Lower Earnings?

Today was another fairly quiet day. Volatility is a bit lower and I increased my usual size to fit the volatility to maintain my earnings. I look at how long it takes to form a range bar as a test of volatility. Other bar types can reveal this info by their ATR (average true range) but range bars need to be timed. Some packages have indicators floating around that do this. MarketDelta can be programmed to do the same but I haven't bothered as I have a sense of it.

Kiki is thinking how she will adjust to this lower volatility. If it only lasts for a short time it doesn't really matter. If it lasts longer, you will notice a drop in earnings if you keep the same size and are used to scaling out. Those who only want to take the first scale, all in and all out, will not notice except there may be fewer trades.

Trades for today:

 Click to enlarge

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