Regime Change

Structural shift in volatility environment

What is Regime Change?

Regime Change A structural shift in the volatility environment from one persistent state to another, such as transitioning from a low-volatility regime to a high-volatility regime. Regime changes can be triggered by macro events, policy shifts, or financial crises. Identifying regime changes early helps traders adjust position sizing and strategy selection.

Complete Definition

A structural shift in the volatility environment from one persistent state to another, such as transitioning from a low-volatility regime to a high-volatility regime. Regime changes can be triggered by macro events, policy shifts, or financial crises. Identifying regime changes early helps traders adjust position sizing and strategy selection.