Let us review a winning strategy!!!

Discussion in 'Strategy Development' started by estrader, May 17, 2005.

  1. Since many of you are in search for a magic winning strategy, this means you are either not making money or losing it.

    I have a simple strategy that is guaranteed to make you as much money on the plus side, as you are now loosing.

    Here is what you need to do. When you decide to open a position follow your current logic and system, except open it in reverse. Thus all the money you have been loosing now from being on the wrong side, you will make by being on the right, opposite site.

    Please, try out this strategy and let me know the results here publicly on the forum.

    Some might doubt the validity of this approach, but the only way to find out is to try it out.

    Good luck! and I look forward to hearing from you.
     
  2. Reminds me of George Castanza. Do the opposite of your instincts.
     
  3. If the losses are due to psychology this might help to at least temporarily snap you out of a bad mind funk and help see things more clearly, gain some perspective. However over the long run if you don't address the core issues, your mind will revert to playing the same games on you, just in reverse. So it won't solve the problem but it might help you gain some perspective if you're in a losing streak mentally or financially.

    If the problem is your method, reversing signals could conceivably make things worse if you have a very inefficient system or a method that is missing some key components. An inefficient system reversed will still be inefficient and most likely a loser, probably even a larger loser than the original system.

    If you don't know whether your losses are from psychology or method this might help to clarify the issue. It also might just end up confusing you.
     
  4. mustang

    mustang

    I've seen this strategy with people that have "given up" on trading. They only lose money twice as fast.
     
  5. man

    man

    flawed concept. find a constantly loosing strategy and reverse. does not work. forget it. this thred will last pages and pages, he outcome will be like this: does not work. forget it.

    the point is: transaction cost.
     
  6. size

    size

    Also spread cost.
     
  7. cosmic

    cosmic

    sounds more like the last rise...

    this will not free anyone from developing a personal plan that works.
     
  8. i have the holy grail for you guys: if most people are losing on transaction costs or spreads: either become a broker, or a marketmaker, or trade very very long term ;-)
     
  9. Another problem with this concept is that its not necessarily the entries that are causing the losses.
     
  10. No, another way to find out is to backtest it. I have taken mechanical systems that lose and reversed the rules and still ended up with a system that loses.

    Example: System with a 6 pt target and 3 pt stop, for a given entry point this system can be a loser both long and short (think 4 pt swing above and below entry point). Even for a system with an equal target/stop a given trade can fail (because of the spread). Think about it.
     
    #10     May 18, 2005