Post your Losing Strategies Here!

UKtradergirl

UKtradergirl

Established member
Messages
825
Likes
147
Has your EA turned evil? :devilish:
Are your moving averages conspiring against you?
Is your stop loss always in the wrong place at the wrong time?

I'd love to hear from any of you who have very badly losing strategies, particularly if they have been 'proved' to be awful through real live trading. Please share your strategies here... long term, short term, scalping, whatever.

If you have never had an unsuccessful system (i don't believe you), then think of one and post it here.

I'll start off with one:

The '1 pip per day strategy'. All you need is one pip per day to make a fortune. Place a trade, any trade, any time. As soon as it is 1 pip in profit close it. No stop loss necessary. 100% success rate as no losing trade ever gets closed.

--
 
Daily 20 pips.com. I don't think it is a losing strategy due to it being based more on luck than anything.

Moving average crossovers on fast securities. Works pretty well on stocks if you choose the right MAs.
 
u remind me of those early days when i started trading. i started to read babypips and amazed how moving average seems so powerful in the tutorial but long string of losses in real-live trade. although have heard people always say the indicator will be most accurate in big timeframe like monthly or weekly chart, i guess i just dont have so much time testing it on big timeframe.
 
Ever tried trading a 'reverse MA' system?

Take the moving average signals and reverse them. A bit scary but i made a little profit doing this (as long as there is no obvious big trend going on!).

--

just wanted to add- i don't trade like this as a matter of routine!
 
Very easy

Buy at resistance after a huge rise

Sell at support after a huge fall

without a stop, using massive position size.

I win the prize of a busted account in the quickest time. :devilish:
 
The question is.. if it is so easy to lose- why is it not also so easy to win? Just come up with the most awful strategy possible and reverse it.

I know this is being simplistic and not taking into account commissions, etc, but still..?

Keep the ideas coming- liking some of these strategies- going to try them out on demo to see just how fast they can lose money.
 
Its quite difficult to design a mechanical losing strategy (other than deliberately eroding away equity by high frequency churning spread and commissions), I'd argue that its as equally difficult to design an unprofitable mechanical strategy, as a profitable strategy basically because in both case the objective is to minimise one variable, and maximise another.

There are staking plans and money management techniques that could theoretically optimise your risk of ruin (but you might have to suffer making serious profits before doing so)

Straddling high volatility news announcements could be a reasonable candidate for a truly crap strategy (with trading arbitarily drawn horiontal lines coming in just a tad behind)

trading in the direction of negative swap, trading ridiculously thin markets, umm running out of ideas now....
 
UKtradergirl said:
Ever tried trading a 'reverse MA' system?

Take the moving average signals and reverse them. A bit scary but i made a little profit doing this (as long as there is no obvious big trend going on!).

--

just wanted to add- i don't trade like this as a matter of routine!
Click to expand...

hehe.. technically speaking it should work, because 80% market is ranging, 20% is trendy. :LOL:
 
everyonerich said:
hehe.. technically speaking it should work, because 80% market is ranging, 20% is trendy. :LOL:
Click to expand...

Yeh, but the returns are smaller since nontrending markets by definition are within a range. So less profit.

Trick is in keeping stops small and making sure you stay out of any large trend (pretty easy).
 
zupcon said:
Its quite difficult to design a mechanical losing strategy (other than deliberately eroding away equity by high frequency churning spread and commissions), I'd argue that its as equally difficult to design an unprofitable mechanical strategy, as a profitable strategy basically because in both case the objective is to minimise one variable, and maximise another.

There are staking plans and money management techniques that could theoretically optimise your risk of ruin (but you might have to suffer making serious profits before doing so)

Straddling high volatility news announcements could be a reasonable candidate for a truly crap strategy (with trading arbitarily drawn horiontal lines coming in just a tad behind)

trading in the direction of negative swap, trading ridiculously thin markets, umm running out of ideas now....
Click to expand...

I challenge you, ZUPCON and here is the challenge.

Then next 3 people reading the thread post one number from 00 - 99.

We'll take those 3 numbers and trade your favorite currency, for a week Zupcon, and see if we win or lose.

We will use a H1 chart and if the H1 candle is green/bullish and price moves up to a price ending in one of those random numbers we go long. If the H1 candle is red/bearish and price moves down to a price ending in one of those random numbers we go short.

ZUPCON, DO YOU ACCEPT THE CHALLENGE?
 
TheRumpledOne said:
ZUPCON, DO YOU ACCEPT THE CHALLENGE?
Click to expand...

I have absolutely NO DOUBT WHATSOEVER that by trading with an element of discretion over exits (and cherry picking which trades that are taken), that its possible to profit from entering at the cross of a line.

The moment you attempt to formalise those rules, its altogether a different issue.

If you wish to trade in a discretionary fashion, I'll happily spend some time in your paltalk room and verify the calls.

If you wish to trade this in a more mechanical fashion, I'll knock up an EA next week. At the start of each hourly bar, we'll place a straddle at the levels of your choosing, I'll even allow you to change the levels on each bar if you wish. You can specify initial stops and targets, and I'll allow you to change them at the start of each bar, give me some stop management rules and I'll incorporate those too.

Monday Im travelling back home, but I have some time to play next week.

As for trading for one week, how about we take 400 trades ?
 
zupcon said:
I have absolutely NO DOUBT WHATSOEVER that by trading with an element of discretion over exits (and cherry picking which trades that are taken), that its possible to profit from entering at the cross of a line.

The moment you attempt to formalise those rules, its altogether a different issue.

If you wish to trade in a discretionary fashion, I'll happily spend some time in your paltalk room and verify the calls.

If you wish to trade this in a more mechanical fashion, I'll knock up an EA next week. At the start of each hourly bar, we'll place a straddle at the levels of your choosing, I'll even allow you to change the levels on each bar if you wish. You can specify initial stops and targets, and I'll allow you to change them at the start of each bar, give me some stop management rules and I'll incorporate those too.

Monday Im travelling back home, but I have some time to play next week.

As for trading for one week, how about we take 400 trades ?
Click to expand...

What is your favorite currency, Zupcon?

Cherry picking? I clearly stated the trade entry rules. We will take the first touch of each line each hour if the candle color agrees with the direction. In other words, we don't go long on RED H1 candles and we don't go short on GREEN H1 candles.

400 trades? There's only 24 hours a day or 120 a week. Are you saying a week of trading is NOT enough to determine the winner of this challenge?

Yes, exits are DISCRETIONARY.

No straddle. We already have one price ending number 25. We need 2 more.
 
TheRumpledOne said:
What is your favorite currency, Zupcon?

Cherry picking? I clearly stated the trade entry rules. We will take the first touch of each line each hour if the candle color agrees with the direction. In other words, we don't go long on RED H1 candles and we don't go short on GREEN H1 candles.

400 trades? There's only 24 hours a day or 120 a week. Are you saying a week of trading is NOT enough to determine the winner of this challenge?

Yes, exits are DISCRETIONARY.

No straddle. We already have one price ending number 25. We need 2 more.
Click to expand...

OK, lets try to firm up the rules:

Bunny's developed a bit of a following trading EURUSD, I have no objection to sticking with that, although if you'd rather a bit more volatility thats fine by me.

I have no objection whatsoever if you'd like to pass up selected entries, if you wish to impose the additional constraint of taking every set up thats fine, but I certainly would not expect you to take trades that dont meet with your criteria

Im fine with discretionary exits, although this of course means that verification by EA wont be possible, which pretty much invalidates the whole challenge for those who are critisising the "system" rather than the trader, but I'll play along How do you suggest we monitor your entries and exits, I assume posting in a forum is going to be problematic ?

Lets take a look at the stats at the end of the week and decide if the sample population is sufficient to draw a meaningful conclusion.
 
Uh-oh. Here we goooo hold on to your seats ladies and gentlemen (and others)

Anyone else have any losing strategies to contribute?
 
A losing strategy is no different from a winning one. If the strategy can lose you a lot of money then reversing it will make you a lot of money.

So a losing strategy can only be one in which risk/money management is out of scale.
 
You must log in or register to reply here.

Similar threads

F
How much are you prepared to lose?
Replies
5
Views
3K
Enzzo
Enzzo
M
confusing trading strategy?
Replies
7
Views
2K
munchiedude
M
T
Trading Fears - Losing money, Missing Out, Being Wrong
Replies
14
Views
4K
shadowninja
shadowninja
A
A Step by Step for everyone: Cut your Loses short
Replies
6
Views
2K
candle7779
C
JTrader
EURUSD daily strategy
Replies
7
Views
5K
JTrader
JTrader
Top