About this Talk
To make money, there must be price movement. Fortunately, price movement can be measured. The key to success is knowing how fast price is moving. The speed or degree of change in price is called volatility.
The potential to make money increases as volatility increases. 2023 has been extremely challenging for futures traders as the markets have been in a low volatility period, limiting the earning capacity for algos. When volatility spikes, we have a greater opportunity to generate above-average profits. But we also run the risk of losing a greater amount of capital due to the increased volatility.
With a disciplined approach, we can learn to measure vol and understand how to approach the market in order to trade it given the current volatility dynamics.
This presentation will review the relationship between historical volatility over specific time periods and discuss short term strategies for trading volatility, and demonstrate how JATS PT is superior to ATR.