What is a good value for AverageMovementPercent?
What is a good value for AverageMovementPercent?
A good value for AverageMovementPercent is one that does not trigger constantly, but activates reliably during meaningful market pumps or crashes.
The goal is balance:
- Not too sensitive (avoids noise)
- Not too strict (avoids missing major moves)
The ideal value depends on your trading style, time horizon, and risk tolerance.
π Commonly Used Ranges
πΉ 0.8% β 1.2% β Early Warning System
This range is ideal if you want:
- Faster alerts
- Early detection of expanding volatility
- Preparation before major continuation
Typical behavior:
- Triggers around 10β15 times per month (varies by market conditions)
- Detects moderate pumps and crashes
- Suitable for scalping or intraday strategies
Best for:
- Active traders
- Momentum setups
- Monitoring potential breakout formation
This range gives you awareness without waiting for extreme moves.
πΉ 1.5%+ β Major Volatility Alert
This range is stricter and designed to detect:
- Strong breakouts
- Sharp crashes
- High-impact news reactions
Typical behavior:
- Triggers 2β3 times per month (on average)
- Detects only significant market events
- Filters minor noise completely
Best for:
- Leveraged traders
- Risk-control monitoring
- News-based trading
- Mean-reversion after extreme spikes
This setting acts as a serious volatility alarm.
π― How to Choose the Right Value
Ask yourself:
- Do I want early signals or only major events?
- Am I trading leverage?
- Do I want frequent alerts or rare high-confidence alerts?
If you want:
- More awareness β choose 0.8%β1.0%
- Balanced monitoring β choose 1.1%β1.3%
- Only strong events β choose 1.5%+
β οΈ Important Consideration
Volatility changes over time.
During:
- Bull markets β movements expand
- Bear markets β downside spikes become sharper
- Sideways markets β fewer large moves
You may periodically adjust this value depending on overall market conditions.
π Best Practice
Start with:
AverageMovementPercent: 1.1
Observe alerts for 1β2 weeks, then:
- Increase if alerts are too frequent.
- Decrease if you feel youβre missing meaningful moves.
π Summary
A good AverageMovementPercent value is one that:
- Avoids triggering on every minor move
- Activates during genuine pumps or crashes
- Matches your strategy sensitivity
Common practical ranges:
- 0.8%β1.2% β Early warning
- 1.5%+ β Major volatility detection
Choose precision over frequency.