As a result of yesterday's flash crash I lost all the profits that I made over the past one month and instead ended up with a loss. However, because of proper position sizing, it only took out a small percentage of my account.
This volatility is killing us small retail traders.
Now, I have decided to keep a even larger stop loss - a 5X weekly ATR stop and a smaller mental stop loss - say a 2X or 3X daily ATR stop.
This reduces your position size drastically, but at least you can save yourself from the flash crashes.
Any other opinions or alternative strategies to tame the volatility beast?
This volatility is killing us small retail traders.
Now, I have decided to keep a even larger stop loss - a 5X weekly ATR stop and a smaller mental stop loss - say a 2X or 3X daily ATR stop.
This reduces your position size drastically, but at least you can save yourself from the flash crashes.
Any other opinions or alternative strategies to tame the volatility beast?