Kosta Ouzas argues most trading systems assume calm markets and collapse when volatility spikes. A robust system must be built around volatility itself, handling both price expansion and contraction, so traders survive turbulence first and profit from it later.
Most trading systems secretly assume calm markets. They work beautifully until they don't, until volatility shows up and simply breaks them. And that's completely backwards because markets are volatile. A system that cannot function during expansion and contraction is not robust, it's actually fragile. A strong system design embraces volatility by structuring around it, by structuring for it, and using movement to improve position quality and of course to generate return. So what it's doing is it's allowing price to work with it without emotional interference. Extracting gains from resolution and not prediction.
