The Holy Grail of Trading

[TopIQ]

Most traders start with a win, then they buy a book on technical analysis, so they start on the trail of the holy grail...

What is the HOLY GRAIL?

For me the holy grail was Minimum False Signals...

OK so first you trade the 50 MA, then you add indicators like MACD, Stochastics etc

You evertually develop a TREND indiator with a RANGE indicator, then you trade with the trend using the range indicator to time your entries.

It works for a while I had a string of winning trades...BUT

Markets CHANGE... SO MUST YOU!

 

[morgan_edge]

The markets change?....so then what..?..you change your 50MA to a 67MA? Change the stoch settings and then you're good to go again for another few months??

I dont actually use many indicators, but I dont believe the markets changing, actually affect your strategy if you are good at simply trading the price.

I dont like the idea of having to keep 'adapting' to an ever changing market, and recently im of the opinion that you dont need to.

Are you constantly looking for new ideas for when your current trading method stops working? How long do your methods 'work' for on average before they stop? How long does it take you to find/backtest(if you do) a new one?

thx

 

[Citizen2007]

I also don't believe markets change. The volatility will change and so will trading ranges as markets either move back into old price areas or into new high ones. Yes , this can have either a positive or negative effect on your overall profits, but as morgan_edge mentions if you can understand how price itself is moving and why then your fundamental truths for identifying trend etc should remain the same.

It would be interesting to others views/experiences on why that will change? How will it change and what precisely may change ? Personally I have never understood this statement and have not experienced this in my trading.

TopIQ it would be interesting to know more details about your systems performance and its changes over a specified time period.

Thanks

 

[GumRai]

It is my opinion that people who continuously change and adapt their trading strategies will probably be losers in the long run.
I am still learning about trading Forex and slowly, everything is dropping into place. When I do eventually have my complete trading strategy, I will not be chopping and changing it because it didn't work so well last week or last month.
Having read a number of old topics in this forum, I have seen some posters amending and adapting their strategy on a weekly basis to suit the recent market conditions and these posters have disappeared without trace. Obviously disillusioned and have given up.