is it ok to have a not very technical, but 'intuitive' trading strategy.

Attila the trader

Active member
192 19
HI,
I'm not taking about trading by feel, without any consideration of facts and figures, but to what extent can a good strategy be flexible , do you always have to have rigid entries and exits , determined by indicators, specific candlestick patters etc. along with fixed take profit levels and stops and position sizes , and you have back tested it thoroughly to find out its mathematical edge . or can you be more flexible . I'm using the latter method and it had done well so far , with a net profitability of 33% since sep, but then again I'm very new and it could just be luck, is the former method more reliable in the long run. as you clearly know its risk and , how large potential loses can be etc.
 

MariaRose

Member
53 3
It is not mandatory afterall to use bunch of inidicators, I have seen trades have filled the charts with number of indicators but the fact is that you can try putting simple zones and trade on that. Why to make trading more complex when things are simple and clear?
 

tomorton

Legendary member
8,434 1,363
It never works for me, I must have rigid set-up rules that define which forex pairs or indices I'm going to take positions on. After that the entry patterns aren't very critical to outcomes. And I know for sure that if I take a position on a market that does not meet my set-up criteria, I will lose.
 

Christoffel

Junior member
16 6
It is not mandatory afterall to use bunch of inidicators, I have seen trades have filled the charts with number of indicators but the fact is that you can try putting simple zones and trade on that. Why to make trading more complex when things are simple and clear?
What strategy do you use to identify trading zones?
 
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sebking1986

Well-known member
284 87
If it works for you then who cares if it is "ok" for other people? Personally I would want more rigidity in rules that I can tweak if needed but you do you!
 

MariaRose

Member
53 3
It never works for me, I must have rigid set-up rules that define which forex pairs or indices I'm going to take positions on. After that the entry patterns aren't very critical to outcomes. And I know for sure that if I take a position on a market that does not meet my set-up criteria, I will lose.
hahaha, this is actually a fact most of the time criteria fails.
 

dusktrader

Junior member
28 13
Personally I have tried both styles of trading - discretionary and rigid-rules-based. I truly believe some people are gifted and can intuitively detect underlying patterns in price action. These people who have honed this skill may be a great fit for the intuitive/discretionary style. I am not that person though -- every time I try to get "intuitive" I am getting burned!!

So right now I'm focused on systems trading where the rules are very rigid. In fact, I want them 100% objective so that I can first learn how to trade them manually and prove to myself that they are worthy. Then I will spend the time to automate those few strategies. My goal is that in the end - the robot would be a better trader than me, because it will execute perfectly whereas this human would most-likely mess it up.
 

HeavLeighGill

Active member
155 33
Sometimes an overly technical strategy can backfire and throw you off...analysis paralysis for example where you get paralyzed because there's so much information available. If it works, it doesn't matter how simple it is but of course you do have to base your strategy off something.
 
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Attila the trader

Active member
192 19
The problem with intuitive trading is that most of the time I don’t realise whether it’s my intuition or I am forcing myself to believe a certain way. Therefore, I rely on technicals but that doesn’t mean using way too many indicators on my charts. I try to keep my strategy simple.
but how you interpret indicators is subjective same for price action , so your bias would affect the decisions unless its automated.
 

Attila the trader

Active member
192 19
Personally I have tried both styles of trading - discretionary and rigid-rules-based. I truly believe some people are gifted and can intuitively detect underlying patterns in price action. These people who have honed this skill may be a great fit for the intuitive/discretionary style. I am not that person though -- every time I try to get "intuitive" I am getting burned!!

So right now I'm focused on systems trading where the rules are very rigid. In fact, I want them 100% objective so that I can first learn how to trade them manually and prove to myself that they are worthy. Then I will spend the time to automate those few strategies. My goal is that in the end - the robot would be a better trader than me, because it will execute perfectly whereas this human would most-likely mess it up.
i don't think you can have a 100% objective strategy when trading manually , because you will interpret the charts/indicators subjectively and humans would not make the most rational decisions , especially consistently . "My goal is that in the end - the robot would be a better trader than me" I agree with that I would would also like to get there eventually.
 
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No_Fear

Newbie
6 4
HI,
I'm not taking about trading by feel, without any consideration of facts and figures, but to what extent can a good strategy be flexible , do you always have to have rigid entries and exits , determined by indicators, specific candlestick patters etc. along with fixed take profit levels and stops and position sizes , and you have back tested it thoroughly to find out its mathematical edge . or can you be more flexible . I'm using the latter method and it had done well so far , with a net profitability of 33% since sep, but then again I'm very new and it could just be luck, is the former method more reliable in the long run. as you clearly know its risk and , how large potential loses can be etc.
I like to use mechanical methods. Discretionary only once in a blue moon. You have to be very experienced to use discretionary and if a mechanical system with a good or excellent edge has already tell you the amount to bet and your stop loss and take profit, why do you still want to trade discretionary? Normally it is to satisfy the itch for trading which often leads to disastrous results. 100% profitable discretionary traders exist but are few and far in between.
 

dusktrader

Junior member
28 13
I think "random" might be the wrong word. True randomness wouldn't move in trends, for example. So based on the fact that we do have trends, I'd say this is more like crowd behavior. The crowd moves like waves in the ocean, so you can exploit these ebb- and flows. I also believe these flows create an infinite amount of opportunity for anyone that learns how to find patterns.
 
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Harrison_lee

Junior member
17 8
I think "random" might be the wrong word. True randomness wouldn't move in trends, for example. So based on the fact that we do have trends, I'd say this is more like crowd behavior. The crowd moves like waves in the ocean, so you can exploit these ebb- and flows. I also believe these flows create an infinite amount of opportunity for anyone that learns how to find patterns.
Agreed!
If you know how to find patterns, finding an opportunity becomes easier.
 
 
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