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markl67

Trading Strategies

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I know I'm probably going to get smacked around for asking this, but why is there not one indicator or strategy that works everyday? Trading a certain way today may be successful, but will fail miserably tomorrow. For example, one day pivots are honored or respected and the next day they're ignored. It's almost like a select group of individuals know from one day to the next what's going to "happen".

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The problem isn't finding a strategy that works every day. Successful trading is simply the exploitation of an edge. Therefore, if it is profitable or not is only the outcome. Most of my losing trades were great trades, and I'd take the exact same setup again.

 

If being green every day is a must for you, you probably will need to make many trades in a day to put the statistical odds in your favor. Finding a strategy (with an edge) that will allow this isn't all that hard. There are a couple methodologies on these forums that I know for a fact can be very profitable. However, a trader is usually his own worst enemy. The time spent and length of your journey becoming proficient is largely up to you.

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  markl67 said:
I know I'm probably going to get smacked around for asking this, but why is there not one indicator or strategy that works everyday? Trading a certain way today may be successful, but will fail miserably tomorrow. For example, one day pivots are honored or respected and the next day they're ignored. It's almost like a select group of individuals know from one day to the next what's going to "happen".

 

Nobody knows what's going to "happen". And you don't need to. Trade your edge. Sometimes you win, sometimes you lose. If you hav a valid edge you end up green at the end of the month. Forget daily P/L. Stick to weekly or monthly results.

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  markl67 said:
I know I'm probably going to get smacked around for asking this, but why is there not one indicator or strategy that works everyday? Trading a certain way today may be successful, but will fail miserably tomorrow. For example, one day pivots are honored or respected and the next day they're ignored. It's almost like a select group of individuals know from one day to the next what's going to "happen".

 

The overall price action of markets or individual trading instruments is too complex or dynamic (lots of variables) for one indicator or one strategy to work every trading day as in "one size fits all".

 

One trading day the price action is impacted by breaking news, another trading day it's impacted by technical reasons, another day it's impacted by a seasonal tendency, another day it's impacted by some regular schedule market event, another day it's impacted by global events and another day it's impacted by any combo of the above mentioned.

 

Here's another example of why "one size doesn't fit all"...pretend you're using a trend indicator/strategy and the markets decide to go into a tight trading range. Your trend method will either not give trade opportunities or the trades signaled will fail. Just the same, if you're using a range bound indicator/strategy and the markets decide to trend, the results will be less trade opportunities or the trades signaled will fail.

 

The general solution is too understand or learn about how dynamic the markets are from one trading day to the next trading day along with being able to adapt because the markets is forever changing...multiple times each year which is why most traders blow up or endure deep drawdowns because they're approaching the markets via that "one size fit all" mentality via the perspective of their indicator/strategy.

 

Therefore, via your pivot example...try to find commonalities among the trading days that those pivots, s/r levels or whatever worked and look for commonalities among the trading days when those pivots, s/r level et cetera didn't work...commonalities that has nothing to do with entry/exit signals.

Edited by wrbtrader
changed my signature

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  markl67 said:
I know I'm probably going to get smacked around for asking this, but why is there not one indicator or strategy that works everyday? ...

 

 

same reason why you wanted to drive a little red convertible when you were young and chasing girls.... then a minivan when you were married and had a family... and a Jeep when you wanted to go off road... and a land yacht when you got old and mellow.

 

;-)

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