What is the simplest trading strategy?

Discussion in 'Strategy Building' started by kut2k2, Oct 1, 2014.

What is the simplest trading strategy?

  1. moving average crossovers

    6 vote(s)
    33.3%
  2. Donchian channel breakouts

    4 vote(s)
    22.2%
  3. other (please specify below)

    8 vote(s)
    44.4%
  1. kut2k2

    kut2k2

    Why Donchian channel breakouts are the simplest strategy:

    The strategy I described in the first post is actually an advanced version of DCB.

    My bad.

    Here is the basic Donchian channel breakout strategy :

    Buy the n-day high, short the n-day low.

    Eight words. That's it.

    Can you describe MA crossover strategy in 8 words or less?

    Hell no.

    Can you describe the ORB strategy that simply?

    No way.

    Anything else? (Coin flipping is not a strategy.)

    Nope.

    Case closed.

    :cool:
     
    #11     Oct 3, 2014
  2. dbphoenix

    dbphoenix

    So why didn't you just entitle the thread "Donchian channel breakouts are the simplest strategy" and take it from there?
     
    #12     Oct 3, 2014
  3. kut2k2

    kut2k2

    Bad setup on my part. Or maybe I just wanted to see how "elite" traders actually thought about basic stuff. I mean if we can't objectively determine what the simplest strategy is ...

    Or maybe I'm just wrong. Entirely possible there's something simpler that hasn't occurred to me. I'd like to see it if it's out there.

    I think a lot of traders are just unfamiliar with the name Donchian channel, despite its antiquity as a trading method. They've heard of moving average crossovers, DCBs not so much.

    But remember: the Turtle trading system didn't use MA crossovers, it used DCBs for a reason.
     
    #13     Oct 3, 2014
  4. dbphoenix

    dbphoenix

    Antiquity!?! Jesus Christ! Bring me my walker . . .
     
    #14     Oct 3, 2014
  5. kut2k2

    kut2k2

    The four-week rule, an early popular form of DCB, dates back at least to the Sixties. I can't find a definitive date when Richard Donchian first published his strategy(s) but he started trading in the Forties.
     
    #15     Oct 3, 2014
  6. Aj2014

    Aj2014

    Do you use Donchian channel breakouts in your own trading, K?
     
    #16     Oct 3, 2014
  7. kut2k2

    kut2k2

    No.
     
    #17     Oct 3, 2014
  8. dbphoenix

    dbphoenix

    Wyckoff predates that and he's a lot simpler, though I wouldn't consider even him to be "antiquity". Homma, maybe.
     
    #18     Oct 3, 2014
  9. kut2k2

    kut2k2

    So you can describe Wyckoff's method in eight words or less? Please do.
     
    #19     Oct 3, 2014
  10. dbphoenix

    dbphoenix

    Trade the imbalances between demand and supply. (7)
     
    #20     Oct 3, 2014