You should consider changing your trading strategy if it consistently results in losses over an extended period, fails to adapt to changing market conditions, or no longer aligns with your risk tolerance or goals. Regularly assess performance and make adjustments when necessary to improve profitability and manage risk effectively.
Every trading strategy needs to be tweaked from time to time. Just. don't overdue it or you will get whipped sawed.
How do I adjust my trades? I'm a trader who uses order blocks (OB), Fair Value Gaps (FVG) and Break of Structures a lot.
when a model exceeds its test results drawdown by 50% stay with it until it comes back at least half that before deciding to bail on it. even a bad model will give you back half the exceeded drawdown amount. yea also don't pick the highest optimized results pick something in the 75% range of results it will hold up better.
Exactly! Consistently losing with a strategy signals the need for change. Market conditions evolve, and so should your approach. Regularly reviewing your strategy ensures it stays aligned with your goals and risk tolerance, helping you adapt, manage risk, and improve profitability over time.
Good Morning Waylen, No such thing as tweaking a strategy. It either works or it does not. Bills gotta be paid, I don't have time to wait on no damn strategy to FINALLY work in special market condition. Lol, I need food on the table TONIGHT. Do nothing, wait for market conditions to like your back tested trading strategy again. Go build 10 more strategies while you wait for the other to recover drawdown. Drawdown, the word noone talks about. Lol
Regular evaluation and adaptation of your strategy are key to managing risk and improving profitability.
If a strategy consistently results in losses or no longer suits market conditions, risk tolerance, or goals, it's important to reassess. Regularly reviewing performance and making necessary adjustments helps optimize profitability and manage risk more effectively.