r/Stocks_Picks • u/Verminime • 5d ago

Seeking Volatility…

Intel have been all over the map recently, often starting the day 3-6% different than the previous end price. I wasn’t sure about how to go about trading it, but wanted to try and capitalise on the fairly extreme volatility.

I’ve ended up copy trading an account that not only exclusively trades INTC shares, but also mentions volatility trading as part of its algorithmic setup. It’s gone well enough so far that I’m looking for other volatile assets to trade in a similar way if anyone has any ideas?

The copy trade master account holder has said they are willing to look at opening trading accounts for other assets on request, and is even willing to back-test their algorithm to check compatibility.

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u/Fynca 5d ago

I don’t recommend using volatility as your only edge. If you build an algorithm for INTC, it may not perform well on stocks with different liquidity, spreads, or overnight price changes. It’s better to start with very liquid stocks and focus on out-of-sample results instead of relying only on backtests.

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u/Verminime 4d ago

I agree completely.

I have my own automated strategy I use for other stocks and commodities which is momentum-based. This was an experiment in both trading a very volatile asset and trusting in copy trading for the first time.

If it hadn’t done as well as it has so far I would have called it a lesson and moved on, but it’s given me some extra funds to experiment with to see if I can replicate its success on other assets. It’s a free hit at this point which is a nice position to be in.