It's simple. Just to name a few. (This is not a recommendation but just for illustration.) A, BIO, DHR, ABB, JCI, MTD.... I can go on and on. Some swear by the 50MA.
Awesome picks. All your picks are in strong up trend. These are the ones that I would like to trade, but I don't trade individual stocks. I trade index futures and currency. Look at USDJPY and EURUSD on Friday, This is so called a strong trending market, a strong intraday trend, low risk and high profit if you do trend following trading.
You already answered your question about how you know that the market has changed when you stated you have a few strategies that go through a "cold period". Simply, that means the market condition has changed. Also, a cold period can imply one of two things: 1) You're not seeing as many trade signal opportunities as you were seeing before 2) You've hit a drawdown period that's unexpected or expected You will never have a trade strategy that works well in all types of market conditions. Thus, one month you may be hugely profitable, another month you may be about breakeven, another month you may be profitable but barely make enough money for some to pay the bills, and then there will be a month you're not profitable. It's because the market conditions keep changing along with the fact how you're intepreting the markets is changing. Therefore, you're correct...there's more to just markets changing and risk management... You're the other key variable. You're that captain of the ship. wrbtrader
I think this depends on the type strategy. If it is based on some kind of mechanical repetition of a certain mix and juxtapostioning of various indicators it will not work all the time because, by definition, it requires market movements to repeat in the same or similar way in order to produce the same outcome. But I think a strategy based on a significant degree of discretionary interpretation of Price Action techniques like S/R, candlesticks, trendlines, etc is more likely to be consistent over time in spite of changes in market characteristics. This is because these techniques are designed to reflect whatever the market is doing at the time regardless of what it may have been doing previously.
I think people have different interpretation for the words" works in all conditions". For example, a trend following strategy works perfect in a strong trending market. It works not as good in a seesaw or range market. But as long as the strategy can live through it and come out winning at the end, you will call it"work in all conditions". It doesn't mean your strategy needs to work as good in a strong trending market as in a seesaw or range market.A trend following strategy winning big in trending market and losing small(or winning small)in a seesaw or range market, and come out totally winning, is a strategy that "works in all conditions"and is a winning strategy. On the other hand, if your strategy works in one condition and loses in another condition, and it come out in a total loss, then you have not built a winning strategy.
Hello longandshort, Very good point. You can do it on the Micro Futures instruments (MES, MNQ, MYM gold and nowe crude oil) Take the $5000 and split into five $1000 and put it on 5 micro trading ideas. And make sure they are not correlated. It's a good idea to do. Thanks sir.
why only 5? hell, he should go for 100 trades of $50 exposure each, just make sure they all have nearly 0 correlation. you can do it OP!!!
Depends what you trade. I only trade indices and my tools work on any index most of the time. Low volatility can be a problem but those days are easy spot. I only trade intra day. My philosophy has always been to learn to trade 1 instrument class and trade it well. My "system" can trade almost any time frame but you have to take into index volatility. Low vol requires a longer time frame (mostly).