The “pain trade” is back…
That means for traders it's a good time to consider smaller position sizing, wider stops and much more discerning execution.
– Smaller size to reduce total exposure
– Wider stops to account for illiquid, volatile trading conditions
– Discerning execution to limit overtrading
— Markets & Mayhem (@Mayhem4Markets) August 6, 2024
For example, if you backtest, your strategies from low volatility regimes may not work in high volatility regimes.
That's one reason I have been adamant about the idea of regime-specific backtesting.
It improves one's hit rate and the potential accuracy of data from your tests.
— Markets & Mayhem (@Mayhem4Markets) August 6, 2024
https://twitter.com/leadlagreport/status/1820562732598366497
BREAKING: In the span of three weeks, $6.4 trillion has now been erased from global stock markets, per Bloomberg.
— unusual_whales (@unusual_whales) August 6, 2024
Bloomberg U.S. Financial Conditions Index pic.twitter.com/n5nmvjiOoR
— Win Smart, CFA (@WinfieldSmart) August 6, 2024
“Policy Is Not Restrictive” pic.twitter.com/9SuIopaIhI
— Win Smart, CFA (@WinfieldSmart) August 6, 2024
US breakeven inflation pic.twitter.com/ZxiSY6OwJ7
— Win Smart, CFA (@WinfieldSmart) August 6, 2024
https://twitter.com/yuriymatso/status/1820566158623506726
How the Yen Carry Trade Blows Up
In just 90 seconds! pic.twitter.com/J38dFzDVFj
— Travis Hoium (@TravisHoium) August 5, 2024