Market Analysis7 min read

Volatility Regimes: How to Adapt Your Strategy

Markets have different volatility regimes. Learn to identify them and adjust your strategy. Identify expansion and compression, and switch strategies to match.

Three Regimes

  • Low vol (VIX<15): Mean reversion works
  • Medium vol (VIX 15-25): Trend following thrives
  • High vol (VIX>25): Reduce size, widen stops

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→ What Is Backtesting→ Risk Reward Ratio Explained→ Support And Resistance Guide

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.

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