November 15, 2018
IN THIS ISSUE
TIPS FOR TRADING VOLATILE MARKETS
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Trading Volatile Markets Can Be Tricky – Here Are Some Tips to Consider
1. Use smaller time frames to keep up with market volatility.
2. Use the regression slope indicator from the Regression category along with
several lags to anticipate changes in market direction.
3. Use the Peak and Valley Probability indicators from the Turning Points Add-on to
track up and down movements.
4. Change which securities you are trading. A model that stops working well on
one instrument may work well on another now. (Remember your objective is to
make money.)
5. Keep the number of prediction inputs low (around 5).
6. Make sure your input variables are detrended. Use price change rather than
price, for example, or better yet use an indicator that combines several data
streams such as price and volume.
7. Judge model performance on out-of-sample data rather than the optimization
set.
Click here to download our example chart. Note that you must own the Turning Points add-on to
use this chart.