Newbie wants to learn a simple trade

Discussion in 'Strategy Building' started by SoCalOptionsWriter, Oct 22, 2024.

  1. SunTrader

    SunTrader

    Always, always use an MA .... if you want to be late to the party.
     
    #11     Oct 25, 2024
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  2. bublu

    bublu

    Yes most of the indicators use lagging data and can double the trouble for many traders using such indicators.
     
    #12     Nov 1, 2024
  3. tomorton

    tomorton

    Given the underlying bullish nature of stock indices and especially the US indices, no complicated strategies are necessary.

    And betting against the US stock market is a poor bet.

    The simplest strategy I can think of is to set a buy order at the Nasdaq's daily High at every Close, with a stop-loss at the day's Low. Exit at the first profitable Close. And keep doing this no matter where price is.
     
    #13     Dec 21, 2024
  4. ironchef

    ironchef

    And the result is?

    What if I do the reverse: buy at daily low and sell at daily high? With an up bias, wouldn't that be a better strategy?
     
    #14     Dec 21, 2024
  5. tomorton

    tomorton

    The result is a good profit with minimal TA or homework. It's easily backtested.

    As for the reverse, this might possibly be profitable very long-term, but I suspect the drawdown to be extreme pain during corrections. In general, I'd rather have a buy order triggered in a rising market, than a long position open in a falling market, even if that's short-term.
     
    #15     Dec 21, 2024
    SunTrader likes this.