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Nice FX, Shame about the Volatility

Posted: Sun Jan 26, 2020 4:17 am
by Ogee
The volatility levels of the Majors is has been falling consistently for well over a year now and is fast approaching 2014 levels. This undoubtedly makes FX more difficult to trade as ATR shrinks and small ranges become the order of the day. I remember trading FX during 2014 and 15 and it got increasingly difficult to turn a profit as price just didn't seem to want go anywhere.

In the end I just kept away from FX pairs with low volatility and also searched further afield to other markets including indices and commodities and that really helped a lot, yes you need to spend some time familiarizing yourself with a new market before jumping in but it was time well spent and all part of the learning curve towards becoming a better all round trader.

This interesting article from nasdaq.com explains the current situation though you probably won't be too impressed with some of the suggestions they make. Certainly you should be looking at the volatility of any pair you are looking to trade and be realistic as to the amount of time your capital might be tied up in a trade as well as the distance to potential targets.

https://www.nasdaq.com/articles/why-fx- ... 2019-11-08

Re: Nice FX, Shame about the Volatility

Posted: Thu Feb 20, 2020 6:32 pm
by Ogee
FX vol just reached its lowest in 28 years.

Re: Nice FX, Shame about the Volatility

Posted: Sun Mar 22, 2020 3:52 pm
by bud01
maybe check again..