The balance between sticking to the trading plan and adapting to market changes

[Arnav Deshmukh]

How can you strike a balance between sticking to your trading plan and adapting to changing market conditions?

 

[tomorton]

Before changing your trading plan you should have identified the market conditions which will allow it to run under optiumum conditions. Then you can track these and revise or temporarily suspend your plan as necessary. But it should equally be possible to foresee what changes might occur and to plan in advance how you would then respond to each. Unplanned and sporadic changes could be very high risk.

 

[Arnav Deshmukh]

Before changing your trading plan you should have identified the market conditions which will allow it to run under optiumum conditions.

You mean understanding how your plan adapts to different scenarios ensures that any modifications are well-informed and aligned with your overall trading strategy , right?

 

[tomorton]

You mean understanding how your plan adapts to different scenarios ensures that any modifications are well-informed and aligned with your overall trading strategy , right?

I mean don't change anything in your strategy unless you have already identified what market changes would otherwise affect your strategy's performance. And unless you have already identified in advance what changes to the strategy you would therefore have to make.

 

[Arnav Deshmukh]

I personally agree with this opinion and I think sticking to the strategy is very important. I simply need to know. What can I do if I notice that market conditions are changing? and recognize your point of view. Appreciate it.