We have been using variations of the opening only strategy since the 1970's, I guess that would count as one of the longest lasting. Simple outside enveloping has been done on the regional exchanges (even through outomation years ago). And, of course, "surrogate specialist" works...pick 2 stocks, trade thme 20-40 times per day. Don
Volatility Breakout works better than anything I have ever used however more important that that is this: (and I realize this is somewhat of a duh..no shit sherlock statment) Try and understand going into the trade what behavior (price action) you are looking for. If you know what to look for you can design exit strategies around that price behavior that will maximize the gain and loss. Exits are far more important than the entries even though 90% of most novice traders focus on the entries. I posted one of my setups to another thread where if a particular setup occurs, I am always looking for an intraday trend to develop and I go into the trade expecting more than a scalp, or in actuality I approach the trade with two exits, a discretionary scalp and an attempt to hold the other half based on the statistics of how I expect the pattern to play out. Because the "setup" is rare, when I see it, or when my program gives it to me, I know what I think it is supposed to do and therefore I try and maximize the profit by holding it longer than I would for a normal trade because the trade is not "normal" it is rare (the setup) and therefore I expect certain price action to accompany it. That is different from a lot of the discretionary trades I might take where maybe I buy something because I see the index that the stock trades in weakening or the spoos are starting to ralley and a buyer seems to be lurking, etc, etc. What I'm saying is, trades (setups) where you know what your looking for often work the best because you can anticipate what your gonna do better to make the best of the situation. Like on Fridays in Atlanta, I am looking for mad traffic in the afternoon, therefore I alter my driving behavior because I anticipate the "congestion" and allow for more time which allows me to accomplish my goal....to get to the bar. LOL. I don't drive well or trade well in congestion.
Cutting losses short and letting profits run. A hackneyed cliche, to be sure. But, like many cliches, it is nonetheless valid and, as with many trading truisms, is more easily said than done.
It was not many of the Market Wizards we onced read about. But, i must concure with the majority of the responses....what has survived the test of time is just what Mark Douglas talks about in his books. The Pysch. rules to the game and the basic strag. as in, cutting losses, letting winers run, and discipline. Other than that, its hard to say what Technical or Mathamatical method has stood the test of time. As the market is living and breathing, constantly changing and evolving....much has to change with it. However, the key Psych rules and rules of Discipline seem to stay the same. What changes is how a trader applies them to the Market.
Mechanical Trading Systems (Trend following) usually outlast good discretionary traders. Spend 50% of the time on system development, the other 50% on Self development.
I agree! This is similar to Ed Seykoya's (sp?) philosophy. Speaking on personal experience, I developed a mechanical system that I'm happy with, but I'm still overriding and taking counter positions to the signals it generates. That's the 50% self development part that I have to work on. DNAJ65000
I can't argue because I have only seen the results of a wide range of discretionary traders. I have seen "good ones" last a long time.