The six basic market condition types according to Van Tharp
On episode #24 of the Better System Trader podcast, Van Tharp describes six basic market condition types, along the two axis of trend and volatility:
trend: up, down, sideways volatility: low, high According to Van Tharp, a good trading strategy can perform well in more than one type of market, but probably not all types. Thus, one needs more than one trading strategy to achieve what he refers to as a “smooth equity curve”.
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