How simple are professional trader's strategies?

Discussion in 'Technical Analysis' started by iamnewuser911, Sep 30, 2017.

  1. Basic?
     
    murray t turtle and cvds16 like this.
  2. maxinger

    maxinger

    This is probably one of the most important question for traders.

    We make it as simple as possible.
    Take about day trading or scalping.

    Whenever there is continuation or reversal signal,
    simply pull the trigger immediately,
    simply take it without hesitation,
    without extensive and intensive complex analysis.
    with no data paralysis problem,
    without intercorrelating here and there,
    without intracorrelating here and there.

    Humans are inherently fearful of loosing $$$. So need to overcome that.

    If a market is very jerky/choopy, don't trade that market.

    Have a daily max loss limit. Once hit, simply off the computer then go far far away.
     
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  3. comagnum

    comagnum

    Pros may use rather simple entry setups but will have much more sophisticated $ mgmt strategies & great discipline. Pros anticipate as opposed to react, they typically have a much wider holding time frame, they trade a much broader range of instruments (domestic & foreign), and have more of a top down approach - they major in sustainability/consistency whereas retail majors in minors.
     
    Last edited: Sep 30, 2017
  4. Xela

    Xela


    This.

    It's not about whether the entry set-ups are "basic": it's about the risk-management and trade-management.
     
  5. It's more about making something complex look simple. Either way, without some kind of active participation you'll never maintain consistency as a trader.
     
  6. 777

    777

    And, one way or another, a winning trader must have overall positive expectation (an edge) on their trades.

    Long ago I used to taking on too much risk in my gambles. This is a common flaw with people who find winning edges.

    I greatly appreciate Xela over and over stressing the importance of risk management!

    Often it is better to go (in hindsight) too slow than too fast.
     
    Last edited: Sep 30, 2017
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  7. Handle123

    Handle123

    They back test over decades of tick data, they already have risk management done before thinking of new entries or how to discern trend differently. Some methods like be as simple as X crosses Y as a trigger or as difficult of using physics and applied Math with cycles. But if you have no clue on risk management and managing the trade, don't matter whether you a newb or pro, you are doomed.
     
  8. DDR

    DDR

    Yes basic ... one line is all you need, however this is a daily TF so how many traders are willing to wait for this ?

    Very few thus the stats are that very few make money.

    I look for this exact signal on any intrument, it's more than the cross of the trendline though. Look at what took place b4 the trendline cross. If my 5 parameters present then it's a trade if not then I wait, but ultimately the cross of trendline line means just
    that, trend has signalled a change, looking for shorts after this move is extremely dangerous.
    Germ30.png
     
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  9. DeltaRisk

    DeltaRisk

    Technical and fundamental analysis along with scalping has no bearing in exchange or OTC markets.
     
  10. lovethetrade

    lovethetrade Guest

    Strategies range from basic to moderate complexity. Too basic and it won't take into consideration necessary elements and too complex is impractical for discretionary trading and eventually produces diminishing returns.

    It's important to distinguish between discretionary and systematic with these type of questions.

    Professional systematic strategies are highly complex and would be impossible for a discretionary trader to absorb while trading unless it was semi-automated.
     
    Last edited by a moderator: Sep 30, 2017
    #10     Sep 30, 2017