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// TOOL 5

Should I trade aggressively or defensively right now?

Classify the current volatility environment and get regime-adapted trading rules. Stop fighting the market -- trade the regime you're in.

Market Regime Detector

Example

Current ATR 4.5%.

High volatility regime. Reduce leverage to 2-4x and use wider stops.

Market Inputs

3.5%

ATR = Average True Range as % of price. Check your 14-period ATR on TradingView.

%

Your asset's typical ATR over the past 30-90 days. Enables relative regime detection.

50

High Volatility Detected

Elevated volatility. Reduce leverage, widen stops, and take profits more aggressively. Detection: Absolute mode (fixed crypto thresholds).

  • ▸Cut position size in half — larger moves = larger risk
  • ▸Avoid scalping — noise will stop you out
  • ▸Widen stops or reduce leverage

Detected Regime

High Volatility

50% confidence

Max Leverage

4x

Regime ceiling

Position Sizing

50%

of normal size

Optimal Timeframes

4H, 1D, 1W

RSI Signal

50 - Neutral

Trend Strength

Sideways

Volatility Spectrum

Where you sit on the risk scale. The vertical line is your current ATR.

Low Volatility (0-1.5%)
Normal Volatility (1.5-3.5%)
High Volatility (3.5-7%)
Extreme Volatility (7%+)

Trading Rules by Regime

The active regime is expanded. Click any card to view its rules.

Trading Rules

  • ▸Cut position size in half -- larger moves = larger risk
  • ▸Avoid scalping -- noise will stop you out
  • ▸Widen stops or reduce leverage to compensate
  • ▸Trade only clear breakouts confirmed by volume

Timeframes

4H1D1W

Position Sizing

50% of normal position size

Volume Context

Normal volume: standard market conditions. Signals carry typical reliability.

How to Find Your ATR

TradingView Method

  1. Open your chart and add the ATR(14) indicator
  2. Read the ATR value (e.g., $1,500 for BTC at $85,000)
  3. Divide by current price and multiply by 100:
    $1,500 / $85,000 x 100 = 1.76%
  4. Enter that percentage above

Quick Estimate

  1. Look at the last 14 candles on your preferred timeframe
  2. Eyeball the average high-to-low range per candle
  3. Express that range as a percentage of the current price
  4. Example: if candles average a $2,000 range on BTC at $85,000, that is ~2.4%

For historical ATR: use the same method but look at the average over the past 30-90 days. Most assets have a "baseline" volatility -- entering it here enables relative regime detection, which adapts to each asset's normal behavior.

Next Step

Position Sizing Calculator

Size your position for this regime

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