As soon as we shorted the Nasdaq with Gap Continuation 2019 today, our shorts were quickly stopped out.
The market quickly surged 50 points (actually 48.75) points in 15 seconds. I remember when the daily ranges were less than 50 points not too many years ago.
We also look at how the $1200 (or 60 point) and $2000 (or 100 point) stop loss version of Cobra III E-mini Nasdaq are at equity peaks with profits on today's trade.
The 30 point stop loss version hit equity peaks on December 27, 2021. Then it went through a 15 consecutive trade losing streak. It is rare to see a strategy suddenly need an increase in the stop loss by a factor of 2 - 3 times what it was.
The main point is, volatility has surged in 2022 and much higher stop losses or smaller position sizing is necessary.
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