A trader may do well for a year, the strategy rocks, then they go through a period where they are not as profitable. They are using the exact same strategy but it falls to pieces the next year, why? This article will help you avoid this trap by explaining why you need to monitor volatility and use changing volatility to adjust the risk / reward on trades by editing your stop distance and profit objective.
The post How Changes in Market Volatility Should Influence Money Management first appeared on Learn To Trade The Market.
Original source: https://www.learntotradethemarket.com/blog/how-changes-in-market-volatility-should-influence-money-management