Traders only realize this after coming to know their own faults. A self reflecting one anyway. For myself it took maybe a year to really get the full concept that I needed to work on “me” even before getting on the charts.
There are tons of "simple edges" that Wall Street won't bother touching. The reason being Wall Street is obsessed with limiting drawdown. A crude simple strategy with 150% return but 75% drawdown (2 to 1 risk reward) will be passed up by Wall Street as their investors can't stomach that kind of drawdown and thus they will pull their funds ASAP causing assets under management to collapse. But for a retail trader who only allocates a small portion of their savings for YOLO daytrading can easily stomach a 75% drawdown on a $10,000 futures account.
Someone get’s it. You sir, are intelligent enough to realize the self reflective topic of this thread and can reply in a way that is constructive and adds value. You and @Businessman Much unlike the other you replied to in your message.
Crude and insane. I know someone who actually does this but his win rate is so high his losses are negligible. You’d think it’s unsustainable but it works out because of the inefficiency he found. And thats his edge. And it’s simple.
Exp-return of 37.5 at = prob. 10% allo (3.75%) and it doesn't beat RFR. Brilliant. This is why you're poor.
You’re the monk on top of the mountain that we young bucks aspire to be my bro. Such an awesome achievement you’ve earned. And it really is a great feeling when you progress. It teaches you so much about yourself. I’m not where I want to be yet but I’m much closer to the top than where I was even a year ago.
Yes and no. I wouldn't be able to trade effectively without writing my own reasonably complex algos, the formulas are not complex, but all the stitching together of all its components is. Trading stocks which I do, one only imo need look at simple concepts. Concepts which are obvious and which many traders are also looking at. Simple concepts such as OHLC of the previous week, month, quarter, year. These create natural S/R levels and are tradeable. As for indicators such as MA's and bollinger bands and EW etc, throw them all in the rubbish bin.
Yup, in my mind, what will help alot is being honest with yourself. If you're honest and don't grasp onto delusion, the market is less likely to fool you.