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TradersCALM - Volatility Concepts © "Dedicated to trading with good feelings." All services are free. |
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The following analysis of traders that TradersCALM know to be making at least 50% return every year is instructive: 10% use a purely directional trading system, 25% use a spread style of trading system, 15% use a volatility break-out style of trading system, 25% arbitrage volatility, 25% trade the path of the market - that is taking out the volatility. The reasons why appear obvious as soon as someone has told you: spread and volatility based systems seem less disposed to exaggerate a traders errors and inner tendencies, for each point of profit available in following a trend, between 10 points and 100 points are often available to the volatility player. Using volatility gives more potential and takes less skill for the same reward to risk ratio. So, is it surprising if the majority of more successful traders are found among those using spread and volatility styles of trading? Tell me more about trading volatility as opposed to trading persistence. |
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