How many separate strategies/systems do you trade concurrently?

Discussion in 'Trading' started by Biomech, Apr 2, 2003.

  1. Biomech


    I feel like I am getting a handle on my strategy of playing reversals in the ES. The problem is, I can go a couple days without a good trade, then have a few very nice setups all in one day. If I watch the ES very closely just for reversals, I tend to force patterns where there are none and make bad trades, and hence lose money.

    I have a separate strategy that I am thinking of starting up concurrently, but it is of a completely different style than my reversal strategy and is for stocks. I was just curious how many of you out there traded multiple strategies at the same time and whether you found that it addled your brain or whether you felt different styles were more complementary. It seems logical that it would be a good idea to trade multiple systems that take advantage of completely different dynamics in the market and to lean on the ones that are currently performing the best in the current market environment. Agree? Disagree?
  2. prox


    Master one , then build on that..

    If you have multiple systems that produce results similarly, by all means go for it.
  3. I trade 3 strategies, two for daytrading and one for 1-15 days swingtrade. They're all "mean-reverting". There is less to prey on for daytrading, that's the reason for the swingtrade strategy. Fed up with trading for 5 cent profit daytrading.
  4. We try to expose our new people to the basic 7 or 8 techniques, and how to utilize a few in every decision process.

    For example....if you decide to become a "pairs" trader, you should still look at momentum for entry points, Relative Strength for the differential between the stocks, and of course, enveloping for better prices. And, yes, we even "scalp" out of an individual stock when the "exit" looks likely to be a reversal on the price.

    Those that have tried to stick to one or two trading "styles" have had a pretty rough time. It's tough to be a "drag racer" when the race is full of curves.

  5. I have two algorithms: one for equities and one for commodities futures indexes.

    The equities algorithm is a TA based one and the CFI grew out of that.

    Be cause of leverage and timing the CFI has a money velocity of 50:1 over equities; the timing ratio is 1:30 respectively.

    Both algorithms are capital limited because of their market applications.

    Each can be operated manually but I do have the equities in software and the CFI is on layout sheets for reference. In this sense they are mechanical systems. The equities software is linkable to Streetsmart software.
  6. i trade 5 - 6 systems simultaneously. that doesnt mean that i am long or short 6 systems all at once, it means that i manage 6 different systems that all look for different parameters for trades. one looks exclusively for short squeeze opportunities, one works on short, 3 day swings, another one does breakout moves, etc.

    managing systems that can be automated also helps me since i know that i might not "pull the trigger" every time otherwise.

  7. 2 systems,
    1 buy system, 1 sell system

    keeping it simple, you know....
  8. One of my goals when I started trading full time was to build a "play book" of different strategies. Like a little notebook that spells out a complete strategy in detail on each page. Because the market is always changing, you could always have something else to turn to when one stops working. I've traded probably 10 different strategies or styles, and have two or three that are my bread and butter and a couple more being refined.

    Trying to actively trade more than one system at a time is tough on the brain though. Automation of some things is the big project on my plate right now.
  9. lescor, if you need some direction on how to automate, let me know. three years ago, i thought that it would be tough to do, but when i did, it made all the difference...

  10. Miki


    Only one system: buy high – sell low…hmm, this burger needs to be flipped over…
    #10     Apr 3, 2003