You cannot rely on a single strategy, you need to learn many of them, in order to change it when it is not yielding you enough in certain market condition, You cannot rely on one strategy for varied market situations.
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So what does this mean?
Are you talking about times when the market does not trend, or something else happening?
What I want to says that there is not a single strategy in Forex, that could be perfect to earn with Forex each and every time. We have to modify our strategies in such a way that we could make the most of it.
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I imagine floor traders have a huge advantage over retail traders, esp scalpers.
I wonder how many retail millionaire scalpers are out there.
Could you give more details about the Floor Traders? I would like to know how it works, and would definitely wanna pursue the same if found profitable.
Good day JeffreyTA, I am interested in knowing the title of Al Brooks book, thank you.
tommor, some strategies work best in trending environment than they do in ranges, I think thats whats they mean.
The optimization process is the same for everyone. Weâre all finding ways to better predict trend direction, avoid missing out, and improve timing. Because weâre all working on the same problems, the optimal solutions are the same. The more time you spend optimizing your strategy, the more it will start to look like the strategies of those that are ahead of you in the development process. Once fully optimized, it will be virtually identical to the strategy of the top traders in the world.
I know that is common sense but most people trust popular conceptions over their own judgement. Some know and donât want to accept it because they are lazy bums. If my saying that turns you off then good because you shouldnât be wasting your time pursuing something youâre not going to put the full effort into. If, on the other hand, the truth inspires you, then you know what you need to do. This is the true psychological battle in this game. Believing that you can develop a fully optimized world class system and having the discipline to invest the time and effort. Every time I see aspiring traders talk about trading psychology its always performance and execution issues being discussed. Performance psychology is a discussion you must earn by conquering development psychology.
Its not about applying different strategies in different environments. Its about developing the best strategy you can, one that accounts for the variations of every single price attribute. Its possible.
Find Strategy > Discretionary Execution (Improvisations Based on New Information) = WRONG
Develop Strategy > Almost Trust > Discretionary Execution (Improvisations) = WRONG
Develop Strategy > Fully Trust > Execute = CORRECT
Iâve addressed these misconceptions in Discipline vs. Greed and Fear
John
We donât count on luck.
Yeah, there is not a single strategy in the Forex Trading, which could work in each and every market condition. You need to understand that if certain strategy is not yielding you enough money, you need to change it before you face lots of loss.
Your statement is a counter-intuitive misconception. Your intuition is telling you that you need to develop one strategy you can rely on, a strategy that can handle anything the market throws at it. But you believe what you read in a book and online over your instincts.
These popular misconceptions are traps for people with poor work ethic. Weâre used to answers being so readily available that having to diligently grind through every single question doesnât seem necessary. If youâre thinking you shouldnât have to reinvent the wheel, youâre being naive. The market favors traders that read charts, not books.
You must follow up the resourcefulness with thorough backtesting. If something is not 100% clear to you, donât stop until it is. None of that cloudy understanding, full of gaps. You must not fear failure and face those mysteries head on. A man knows how to admit when he doesnât fully understand something. There are things youâve mastered and things you havenât. You know the difference right? Suddenly you forgot how to tell the difference or think that somehow that doesnât apply to trading because its so complex. Trust me, clarity is possible. So if something is still unclear to you its not because there is no understanding it. Its because you have an incomplete perspective.
You must be humble, open minded, and relentless during the R&D phase of your career. Until something is undeniable, you donât commit to it. A lot of times I would work all day on one thing and finally figure it out in the 20th hour. Because until that point I knew I didnât have the full clear understanding. Sometimes I would work three 120hr weeks mastering a single concept. I learned early on not to let a single idea come and go. Every single one was captured and tested against historical price data. Every single idea someone else came up with was captured and tested just as thoroughly. Every single one.
The research and development phase is the toughest part of the journey. Once you have a strategy you fully trust, the next step is to become mission oriented. A man on a mission cannot be influenced, by childish arrogance, to go off script. The rules of my strategy were configured by me at my best. Ultimately I am trusting myself by not breaking the rules. If you break the rules it means there are still unanswered questions. Accept that and get back to work. Confidence is a privilege granted to those that have dedicated years to developing a trustworthy method.
Most people fear investing the time. I had this fear for the first 6 months of my career, then I decided to dedicate my life to this game. I became obsessed with the challenge and willing to sacrifice myself to succeed. Suddenly I had all the time in the world at my disposal and spending it on other things became the risky move. If you aint ready for that type of commitment, you donât stand a chance against me. Make no mistake, its a zero sum game. No one will ever spill the secrets in those books youâre reading. The real answers come from within, as a result chart analysis, brainstorming, testing and collaborating with peers with the same passion and objectives.
John
We donât count on luck.
@ _bob
youâre in a funny mood on this post. How is the trading system that you were working on a little while ago, seemed to have v good results.
Greetings, not sure how long you have been trading but there are many approaches that can be long term profitable.
It would depend on your particular skill set and therefore the approach you decide to take that draws on your main skills.
I think the easiest reliable way to make money would be to get in on the trends on import political news, that approach would be more suited to capital growth long term than a fixed income from trading.
I would say pick a simple system and find out what the main features for success with that system are, then find a way to predict if the market conditions near term will have those success conditions.
Itâs simple but hard at the same time.
Thanks for analyzing my conscience, but you somewhat get me wrong there. I am just saying that you need to have a knowledge about when to change a strategy which is not profitable and look out for another one, but if you continue with the same in each and every trade, you will suffer huge loss. Thatâs my personal Experience.
which one bro??? My effort for the past 2 years has been on my boxes, 1 pair, 1 trade, once a day. Its a stupid way to trade, very discretionary and I wouldnât recommend it to anyone. But one works hard behind the scene in hope to mechanize things.
On a side note if you head back to this thread Donchian Channel Trading I suggested and gave out a bot/strategy for the one hour chart. Pulled the bot out a couple of months ago and did a forward test over 2 years and got blown away with the results.
Chart is for the EURUSD June 2015 to July 2017. Entry being the break of the 20 period channel and a simple trailing stop of 2 x 20 ATR. 1% risk on balance. Thats a potential 28% return over 2 years. As a raw strategy itâs one worth investigating.
Unfortunately my limited time takes me back to boxes first.
Mum used to tell me when to change me undies too!
hi bob,
so you tweaked the bot from then a bit, no?
as far as i remember we had the trailing stop being a 2xATR of the breakout chart (1h) or did i already miss that back then? 
Hello old friend.
No tweaking here. Just in the coding as my skills come better. If it wasnt for my boxes (which at the end of the day is just a donchian variant) I would be all over this. And considering the thread title we have just handed people a pot of gold.
And yes that was the setting for the 1 hr chart.
Oh I see my mistake. I said 2 x 20 day ATR. I meant 2 x 20 Hourly ATR
Hereâs the best Forex strategy Iâve found to date: make âforex tradingâ a mere portion of a more diversified portfolio.
60-80% of your portfolio should be nonFX (mutual funds and ETFs- NO SINGLE STOCKS!)
The remainder can be dedicated to med-longer term FX positions.
Thatâs kind a good strategy you got their. It would be quite beneficial for you, but can you rely on it for each and every trade? You need to think about it. Same Strategies wonât work each and every time.
Yes, the same strategy does work each and every time- itâs why Wall St. exists and continues to be funded to exist in portion by retail traders.
Retail traders can accurately predict direction- Iâm not arguing that.
What they canât do is consistently close out trades that pay more than their losses.
To me, the idea/concept of the âretail daytraderâ is nothing more than a unicorn fantasy.
There are a few that exist out there, but the majority fold when asked to show proof of their trading history for > 3 months.