Dead Markets

This is probably the video I should have focused the most on but I for some reason totally didn’t and decided to start my prop firm evaluation at 5%ers and failed during a super dead market time.

A dead market is when liquidity has dried up and because of that the movement of currencies does not go in any which direction and ‘trend’.

Since the NNFX is based on the method of trend trading this is not good when the market lacks volatility.

The opposite of a trend trading strategies are called a mean version strategy. (Could this be something to practice while markets are dead, maybe…)

How to recognize a dead market.

The $EVZ (EURO FX VIX) on bar charts website is what we use to measure the volume and volatility in the currency market.

The level which VP uses is Level 8.

(Pay attention only to the close of the day level)

Realize this happens because this is normal.

How to take advantage of Dead Markets

A good volume indicator can be tested during these periods and it should be keeping you out of trades.

Your system should be losing as little as possible during this time.

Put a plan of action in place

Some options are as follows:

Do not trade if the $EVZ hovers around Level 6.

If your system is giving you signals during the time, avoid the USD pairs, and take the full trade off at the first ATR profit.

(I can actually say this profit taking at first ATR instead of leaving half on for the second trade is a great idea. All my trades in September 2019 never went past my first ATR profits. I would have made more taking all of it off on my first ATR)

If in the worst case scenario you need to trade during this dead market time to make money:

You can do it on a lower time frame but Mr. VP says that is not a good idea and your results are not going to be the same as trading the daily time frame so return to the daily time frame as quickly as possible.