Volatile markets are characterized by sharp jumps in price, and volatility breakout systems are designed to take advantage of this type of price action. Volatility breakout systems generally have the following characteristics:
1 They spend a substantial amount of time out of the market.
2 They generate a high percentage of winning trades but earn a small average profit per trade.
3 They don't take advantage of big moves.
4 They are exciting to trade because trades are quick and short-term.
5 They are based primarily on increases in volatility.
When designing this type of system, the key is to anticipate and take advantage of a significant change in volatility and to exit the position without giving back a lot of open profits.
Volatility Forex Strategies
Read more: http://www.forexstrategiesresources.com/volatility-forex-strategies/#ixzz1nIkhus2b
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