One Method or One Market ?

[shatztrader]

Why would you miss out on trades by practising one set-up when, as option 2 states, each market behaves differently due to differing participants and/or levels of interest at any given time? You could be leaving yourself open to searching for one sided trades and/or not being able to find a trade when the markets aren't acting in a way you like. a
How can you try to follow one market without considering what is happening in others? You'd have to at least look at information or "events" in other markets to as Ay-Rab said to see what was up wouldn't you. Hot and cold markets, flights to quality... all that jazz. What you do when you know you're market is range bound and there will be many other ops elsewhere?

Does anyone actually trade ONLY pa?

me

 

[Dinos]

My 2 penneth fwiw, over the years I have swapped and changed the "products" I have traded, at times, with the benefit of hindsight, I saw I traded to many at once and was not fully focused on the job in hand. Now I trade FX only, I have selected FX pairings, but trade mainly one, the others are there for "flat days" when I need to swap.

The FX pair I trade, I know inside outside as best I can intrepret, i use my intrepretation using a KISS format, which is supported by a set up which confirms my views on what is happening before me, then I can trade.

Getting to know one inside out, the best t/f to trade it off, know how it reactes to certain circumstances, news, data etc, all add information to enable me to make a trading decision, that decision is backed up by a "technical set up" to confirm my thinking, rather than trading just off the set up.

Each to their own, and I don't think by "ridiculing" or taking a moral high ground because of your views solves anything on the thread, I thought the idea was to help one another, or maybe I'm wrong.

 

[meanreversion]

I think the most important thing is to evolve a trading style which suits your temprament, and potentially sacrificing profit to achieve it. For example, your system could exit based on a chart signal OR you could set fixed pip/percentage exits at the outset of the trade. The former method requires constant observation, whilst the second is "set and forget". Method 2 is probably less profitable, but be prepared to occasionally get up at 3am if you choose Method 1 (although some people might not mind this!)

 

[Schixm]

wish i'd seen the thread sooner. i think the key is diversification, either using different time frames across one instrument that you know well and using a setup that works well for you and/or discretion, or trading a basket of instruments again using just the one setup or discretion.

personally, i try to use two versatile setups (one for reversals, the other for continuation) on either one instrument across different time frames or on a selection of instruments - so bit of both really. am actually looking for more advice about this as well as it's not easily done. i don't like waiting for one setup to occur on one instrument only to see it turn against me if i'm wrong - waste of time AND money (like watching the wrong colour paint dry sometimes).

i find having some diversification should at least bring me closer to break even (if i'm wrong i.e. limit risk) and i find it a more interesting approach as well. it's a bit like having several cogs turning (in a money-making or money-burning! machine) as opposed to pulling on a single hand pump for hours trying to get water from a well that could be dry.

of course all these things are easier said than done.

 

[meanreversion]

The issue with trading several different contracts is that, due to the high correlation across asset classes, they can sometimes all move in tandem. So even though you think you have a nice "basket" of things to trade, they are all a bit of a proxy for each other. This means that you could wait a while for a signal, then get 5 at once. Doesn't always happen like this, but be careful..

 

[virtuos0]

The issue with trading several different contracts is that, due to the high correlation across asset classes, they can sometimes all move in tandem. So even though you think you have a nice "basket" of things to trade, they are all a bit of a proxy for each other. This means that you could wait a while for a signal, then get 5 at once. Doesn't always happen like this, but be careful..

I trade one setup only, on one FX pair only that I know as well as I know my own reproductive organs. Pure PA not a single indicator, not so much as a moving average. Oh also I do my best to ignore fundamentals, although of course I am aware of when news is about to be announced so I can turn my computer off and and go and watch Bargain Hunt.

 

[timsk]

. . . that I know as well as I know my own reproductive organs.

Whoa, w a a a y too much detail virtuos0!

 

[montmorencyt2w]

wish i'd seen the thread sooner. i think the key is diversification
[...]

...and perhaps one reason for that is to combat (to some extent) the boredom, because good trading (as I have come to understand it) is largely boring, or rather, it should not be exciting, or done for excitement.

 

[counter_violent]

I work with computer programmers most of the time but I have yet to encounter the level of nerdishness that exists on this forum.

Out of interest...do these coders code their own ideas or are they instructed specifically what they should code by others ....i'm assuming trading related ?

What is your role and relationship to them?

Fwiw.....coding is a pretty nerdy occupation me thinks

 

[counter_violent]

Nearly forgot to answer the question

A proper trader who knows his stuff can trade any instrument or market and make a profit.

Sounds like a bold statement that I may just back up when the mood takes me :!:

Did Jesse Livermore sit around all day trading One stock ? No of course he didn't!

 

[rs1]

Not sure why but it seems like there is a bias on here towards the one market approach. My approach has always been to have one setup applied to various diversified markets. I don't think the setups get efficient marketed out, but you can get periods of nasty drawdown, like the last three weeks for me.

If your money management is sound and you wait for your system to start "working" again, I think the one setup, several markets approach is pretty good. As long as the markets offer some form of diversification and you allow for the fact that they can all move together at the same time as well, in your risk management rules.

 

[Technically Fundamental]

probably because there is a bit of a bias against indicator set-ups

 

[rs1]

Ok, fair enough. But setups aren't always indicator based, mine aren't.

 

[Technically Fundamental]

I know but "set-up" is almost synonymous "indicator/pattern based strategy" on this site. It causes a bit of confusion sometimes.

 

[pedro01]

Out of interest...do these coders code their own ideas or are they instructed specifically what they should code by others ....i'm assuming trading related ?

What is your role and relationship to them?

Fwiw.....coding is a pretty nerdy occupation me thinks

No - they code what others tell them they should code. It is their interpretation of what the person is telling them that usually falls short. It's a common problem in software. They become too literal. They take the word to extremes.

You can say "write me a program to make a cup of tea". What you get is half a bra and a big T. Whilst they did provide what you asked for - common sense didn't kick in at any point.

Same with this thread. Do you, for instance, trade the e-mini's exclusively because you know it OR do you trade, for instance, breakout patterns across markets because you know breakout patterns ?

It's really not a hard concept to grasp. Sure I could have stated it better but to be honest if you need an explanation, then you are "black and white" and I reckon a but of "grey" would probably help your socials skills. :whistling

 

[pedro01]

Nearly forgot to answer the question

A proper trader who knows his stuff can trade any instrument or market and make a profit.

Sounds like a bold statement that I may just back up when the mood takes me :!:

Did Jesse Livermore sit around all day trading One stock ? No of course he didn't!

No - but he also shot himself in the head. He's hardly a role model.

There are many bold statements on this site. Seems like a pattern is forming...

A question is asked, then someone comes on patting his own back saying they have all the answers but can't give details. Sometimes they don't have time, sometimes they can tell you but would have to kill you later.

Either way. It impresses the hell out of me. :whistling :cheesy:

 

[Paul71]

Right. Apparently this forum is going darnhill. Not enough trading talk so to speak. Too much trash.

OK - so here is my attempt at a trading related thread.

Let's say for a second that you had to choose between the following. I mean really have to choose, you can't have both. Imagine your balls are on the line ( girls - you should be in the kitchen anyway, give hubby back the mouse for heavens' sake).:

- Trading one stock/futures market/forex only, getting to know it like the back of your hand and then trading that market only
- Trading one setup but across multiple markets - trading any symbol but only that one setup

Which do you think would be better & why ?

I have my thoughts but will keep them to myself for now.

Pete

Hello,

I trade one market only, Nasdaq Futures. I only look for Price and Time. All markets are cyclical. The day, the week, the month, the year, the decade.

You have to know how to order your market.

Good luck! (if you are lucky, or unlucky, your market will work the same)

 

[counter_violent]

No - they code what others tell them they should code. It is their interpretation of what the person is telling them that usually falls short. It's a common problem in software. They become too literal. They take the word to extremes.

You can say "write me a program to make a cup of tea". What you get is half a bra and a big T. Whilst they did provide what you asked for - common sense didn't kick in at any point.

Fully agree with this view...

Coders are not best placed ( even though they would argue they are) to write anything of any value generally in trading.....It takes a great deal of comms to convey the esscence of what it is that needs to be done, and is best communicated by a trader who has done the hard yards.

Same with this thread. Do you, for instance, trade the e-mini's exclusively because you know it OR do you trade, for instance, breakout patterns across markets because you know breakout patterns ?

It's really not a hard concept to grasp. Sure I could have stated it better but to be honest if you need an explanation, then you are "black and white" and I reckon a but of "grey" would probably help your socials skills. :whistling

I simply do not see this choice in my world...every instrument can be in it's own condition and also part of a bigger related condition....whole market activity can tell us what is happening or likely to happen and trades can be taken or managed accordingly both individually and as part of a much larger overview....the key to cracking trading consistantly profitable is knowing market / markets / instrument / instruments condition, and nothing to do with knowing One instrument or One condition play. When everything that is relevant is known...then trading is frankly a doddle and it can then be said that you have a permanent sustainable edge....No small feat btw...takes years of hard yards...majority never do enough work / study / observation and repetitions that ultimately ensure success......anyone reading this may come to One of Two conclusions...CV is an arrogant S O B ....or, maybe this guy knows what he's talking about.

As for social skills...i'm pretty sure it's irrelevant to me and my bottom line.

Was trying to attach a Doc of todays trading activities but there seem to be issues...will try to find a solution and add as an edit .

.

 

[pedro01]

Some good points there for sure CV...

Seems like you are mostly forex today. Can I presume you trade mostly forex ?

Would you feel comfortable moving to pork bellies, interest rates or some other non-correlated instrument based on what you do with forex ?

 

[Paul71]

For Fuch's sake, stop over analyzing things.


:clap:Good stuff! Very true, though. I especially like the idea of 'pros' taking advantage of everything under the sun, it's a common theme on trading chat forums. Joe Soap has his 'Broadening Megaphone' set-up, then along come the bloody pros and ruin it! I much prefer R D Wykoffs 'composite' mentality, it's easier to deal with. Anyway, i appologise for taking the thread way off target.