I want to get your thoughts on volume which by that I mean the number of trades made per day. I'm not talking about the number of contracts or shares but the number of trades. Are higher volume trading strategies associated with more consistent returns required for trading for a living? Maverick (or Don), what do you think? I'm typically placing 1 trade per day in my current strategies at most, some 50 trades per year. But this is partly due to my situation: i.e working full time job and fee structure. Dr. Steenbarger always said focus on strengths which for me is calling direction and especially I have my own exclusive style. But, I call market thrust of 1 or 2 days. It is basically momentum trading before the momentum. I've adjusted my style to actually trade momentum off the open in recent markets. But my old school b&b was to anticipate the momentum and get in before. I can also trade direction for measured moves. But I guess what this boils down too: is it a worthwhile goal to increase my volume or adjust my style ? Do I need to do more volume to hit the sweet spot?i.e more trades
Less is usually more. You shouldn't be trading for trading sake. I think it's better to take one trade and risk 10 ticks vs 10 trades risking one tick.