@colinwolf

For short-term traders, news-driven spread strategies behave differently across volatility regimes. In low-volatility phases, signals generate modest returns but with stable hit rates. In medium regimes, profitability spikes as markets overreact. In high-volatility phases, slippage and false signals increase, eroding alpha. Adjustments involve tightening stop-losses, reducing position size, and speeding exit criteria under turbulence. Adaptive signal thresholds based on implied vol levels improve resilience. Essentially, news-trading thrives in moderate volatility but requires defensive calibration in extreme swings to avoid being caught in whipsaw markets.

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