Hi,
If anyone can please help me understand, Are most Trading Strategies able to be used in any market? for example: Stock, Forex, Futures… ect ect?
I seen Futures Traders with ICT in their name but I was under the assumption ICT is a Forex guy?
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Most strategies based on price charts and the indicators derived from them are applicable across all markets.
There are a few exceptions. Some are driven by market structural characteristics - stock markets close at the end of the day, forex trading continues 24 hours.
But there is only one reason to buy any market - you expect price to rise. There are two reasons why price might rise -
because it has been rising
because it has been falling
These truths are the same the world over.
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what do you mean by trading strategy? type of strategy like trend following or strategy which you have on some currency pair.
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Say like Smart Money Concepts and similar models ect
Say if I study Forex and trade it, how much of that knowledge am I able to transfer over to different markets like Futures? is 90% of trading the same as any market, With the remaining 10% exclusive to each market? say like the difference in forex & futures?
Different markets, different dynamics, it’s as simple as that, in my opinion. Sure, there are some trading strategies applicable to most markets, but it is more often the opposite.
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Most? Yes ; All? No. Yet, they could/would behave differently because they work on datas.
And we have different datas across all assets; not one data is the same as the other.
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futures and forex are derivatives so you can trade some types of strategies on both markets, but you have to make some adjustments like pip/index point. SMC is a bad example in my opinion, as retail traders we don’t have access to specialist information as big company has.
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Basically, yes. But like ProfesorPips said, it depends on what you mean. One difference between i.e. the stock market and FX is that you can see a stock rise or fall by 50% or more in a session, this will not happen in FX (excluding the exotics). Also, mean reversion is more common in FX, or at least retracing back to a fair/common perception of an exchange rate. A strategy of “buy the rumor, sell the news” is harder with FX, as many macro decisions are… lets say subjective. You might have more luck in calculating the expected quarterly revenue for a company than the CPI or expected interest rate decision of a Central bank. Most recent, when every single expert said the Norwegian central bank would not raise the interest rate, but they did. Surprising everyone.
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ICT has proven unreliable for me. I use a strategy for forex and a modified strategy for commodities. There is no magic strategy to fit all. I have been following the trading style of Mr Minervini with great success. Backtest all strategies before use. My 2. Cents
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Trading strategies can often be adapted to different markets, but it’s crucial to understand the nuances of each market and make necessary adjustments.
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The most crucial parameter is understanding that the market only either goes up or down. So any strategy that is based on this parameter is definitely universal
Principles and concepts can be universal.
Methods will differ.
Ultimately, the effectiveness of a trading strategy in a particular market depends on various factors, including market conditions, liquidity, transaction costs, and the strategy’s ability to adapt to different instruments.
my own opinion, all market are the same just the way they react atimes are different. maybe your the strategy you use in one particular market is different from another, that’s different things but they trade all the same way
I don’t think so.
What are these strategies referred to? Is it indicator to be used on the market?
Your trading strategy must be your overall rules book. Sure, you need different strategies for different instruments, but you cannot adapt your strategy to liquiditiy, market conditions etc. If you do, it is not a strategy, as these conditions change from day to day, from hour to hour and minute to minute. If you constantly adjust your strategy, your are winging it. That is not a strategy. Either you must develop a strategy for your trading preferences (I.e. trading on the 1-hour or 4-hour timeframe), or using fundamentals, or whatever. But you must stick to it. Adjusting for all eventualities makes it random.
Many trading strategies can indeed be adapted across different markets like stocks, forex, and futures because the fundamental principles of trading—such as understanding trends, price action, and risk management—apply universally. However, each market has its own unique characteristics (like liquidity, market hours, and volatility), which means a strategy may require adjustments to be effective in a different market context. For instance, ICT (Inner Circle Trader) concepts originally popular in the forex community can be applied to futures trading as well, with some modifications to account for the differences between these markets. Essentially, while the core ideas of a trading strategy can be versatile, successful application often requires tailoring to fit the specific nuances of each market.