How many strategies

[Mattsim]

Hi,

I’m looking into putting together a few price action strategies to test on a demo account. I’m just wondering how many strategies I should roughly have? as if I did one for every pice pattern, s/r, trend lines, and candlestick patterns there will be at least 10 strategies..

Is it best to pick one bearish/bullish candle stick pattern and stick to trading that? And don’t write a plan for the patterns I.e head and shoulders, triangles etc.

Im really struggling with this so any help is appreciated.
Thanks in advance

 

[tomorton]

Calm down Matt. Sounds like you're mixing entry signals with strategies.

Try coming at this from the other end of the process - think about not why you want to get into a trade but what the price behaviour should look like after you've got in. From that point of view there are basically only 2 strategies - (e.g. for long trades) you want to be in on an up move because price has already been rising and you believe it will continue, or you want to be in an up move because price has been falling and you believe it is reversing.

Both have their pros and cons. Look back at your preferred markets in 2017 and highlight the price moves you would have wished you had been in on. These will naturally indicate areas of entry and once you've got the profile of the position you want to be in and the zone of entry, the entry signal will become both obvious and (maybe counter-intuitively) unimportant. Happier trading.

Hope this approach helps.

 

[anon301501]

You don't need that many strategies. Find one that you like and master it.

Cheers,

301501

 

[kalott]

some use mean reversion and trendfollowing/breakout at the same time

 

[Brumby]

Markets are usually in equilibrium (consolidating) with prices moving randomly. No technical edge is possible in such an environment. Every technical edge comes when there is an imbalance of buying and selling pressure. When there is an imbalance, trade opportunities come from mean reversion (overbought or oversold) and range expansion (trends and climaxes). Your effort will be to find patterns that have a statistical edge in those opportunities and only trade when there is an edge.

 

[fxstrategist]

Yeah, setups are not the same as strategies. An strategy is composed of parameters and setups. But interesting comments from all of you.

 

[mpups]

According to me, any target can be acquired by using your trading strategies if just you know how to manage money accurately when trading practically.

have you acquired any targets while trading practically peter?

 

[Whitehead]

Forex trading is the most fluctuating market which requires a good strategy to work on for gaining profits. You need to build as simple strategy as possible for your trades which include least indicators. The outcome must be a strategy which will work most of the time.

 

[min6485]

Design your own stragety

You don't need that many strategies. Find one that you like and master it.

Cheers,

301501

I would have to agree find one strategy that fits you your personally. What I have found out through experience sure you can copy some one else strategy and they are making money using it that does not mean you will be profitable using it because it's doesn't fit who you are as a person. It took me a long time to learn that concept.
When you design your own guidelines then you know everything about it because it's you.

 

[NVP]

Hi,

I’m looking into putting together a few price action strategies to test on a demo account. I’m just wondering how many strategies I should roughly have? as if I did one for every pice pattern, s/r, trend lines, and candlestick patterns there will be at least 10 strategies..

Is it best to pick one bearish/bullish candle stick pattern and stick to trading that? And don’t write a plan for the patterns I.e head and shoulders, triangles etc.

Im really struggling with this so any help is appreciated.
Thanks in advance

Start with 1.......add to it only if you feel that pattern 2 is as good as pattern 1 ......many traders have built fortunes out of just 1 decent pattern Matt

N:smart:

 

[NVP]

In Forex trading we the traders have to choose our trading strategies in order to our trading understanding, and we have to choose the trading platform which is more appropriate to the concept of trading system that will be used , otherwise we could a great trouble when trading practically.

So find strategies that fit your personality ?

 

[NVP]

Markets are usually in equilibrium (consolidating) with prices moving randomly. No technical edge is possible in such an environment. Every technical edge comes when there is an imbalance of buying and selling pressure. When there is an imbalance, trade opportunities come from mean reversion (overbought or oversold) and range expansion (trends and climaxes). Your effort will be to find patterns that have a statistical edge in those opportunities and only trade when there is an edge.

Yep....Trading is ultimately about finding a statistical edge and leveraging it ......takes time but can be done

N:smart:

 

[Whitehead]

There are many strategies on this market. It's important to pick several working ones out and create something of your own, suitable for your trading style, based on them, or replace them completely.

 

[NVP]

There are many strategies on this market. It's important to pick several working ones out and create something of your own, suitable for your trading style, based on them, or replace them completely.

So how do,you evaluate if your strategy is wrong or simply not in tune with the market ?

N

 

[NVP]

That's the point how anyone is going to identify that his strategy is not working anymore with the market flow.

but supposing your core strategy is ok but you are simply misreading the market all the time ?

 

[NVP]

all strategies are useless unless you can read the markets dynamics ......you will just be throwing a dice instead of trading

 

[hatemypips]

all strategies are useless unless you can read the markets dynamics ......you will just be throwing a dice instead of trading

Isn't it the trading strategy? or you call it a hunch?