Incorporating Volatility into a Strategy
Hai
For the sake of conversation, assume there is a statistical edge in the strategy in the /ES
This is a price action strategy and in theory, would be tradable across all markets and all time frames. However, I have noticed that this is not the case. As it seems to not be at all relevant in the forex markets and is less reliable the smaller the time frame you go down.
Regarding the Market price action in relation to my strategy, the HOURLY chart I get whipped around and stopped out more often now than a few months ago when the Hourly chart was my bread and butter and what was tested on in past previous historical data.
I subscribe to the idea markets go through phases and constantly change. What I'm asking about is what are some ways to incorporate the changes in market volatility within your strategy.
Do you just size down and endure, do you move your entries to more favorable areas, or do you just trade on a larger time frame?
Trying to brainstorm some ideas here if you can't tell.
Or perhaps the challenge is uniquely my own, regardless
Thank You for reading :)