Can a Trader change his strategy, even if it's successful?

[Jamie J.]

Thanks to the right strategy, traders can control the risks, overcome stress, manage profit and get important experience. But what can make us change our strategy? And how often do you have to choose another "secret weapon"?

 

[Robert Morse]

You should be looking to improve and evaluate continuously. No strategy works in every market condition.

 

[GotherL]

That's a peculiar question that doesn't have an answer since it makes no sense to change a strategy that is already successful. Remove the "even if it's successful part" in title then will get something going perhaps...

 

[java]

or, Is it possible to change a strategy BEFORE it goes bad on you?

 

[JackRab]

Because you find a better one... or it doesn't work anymore...

It's all maths, when you can make more with a different strategy with better risk/reward, you will do it. That's why we trade, because we make more that just buy-and-hold (which is a successful strategy on it's own).

 

[FreakofNature]

Thanks to the right strategy, traders can control the risks, overcome stress, manage profit and get important experience. But what can make us change our strategy? And how often do you have to choose another "secret weapon"?

One never stops learning from Mr. Market.

 

[lawrence-lugar]

And how often do you have to choose another "secret weapon"?

In my humble, simple opinion...the best traders....don't change their so-called "secret weapon" ...but rather just churn it daily, or normally, like clock work

If you, the trader, find yourself scrambling and scurrying around thinking of new strategies...you're just bound to get your head bitten off.

 

[Winjak]

It can't be successful ever... Someday changing time will come. But I think that the strategy can't be thrown away completely. Keep it, but improve it, use every good chance for its development

 

[bln]

Yes, you always keep looking for new strategies to diversify so you have multiple choices, even if the core strategy I currently trade performed +900% since 2010 I still keep doing R&D, testing out new theories and ideas. One need to constantly evolve to keep on the top in this game.

 

[java]

once you find YOUR strategy, it becomes a principle you never change. For instance, a value investor has a principle that won't change just because the market is screaming higher, even though all around him momentum traders are making money hand over fist every day. YOUR strategy is based on how you see the market and life. It all makes sense to YOU even though it won't work for others that backtest it. The strategy becomes a principle you base all your trading on. But it may have to be adjusted based on the market. Markets become thin. Markets move from one country to another. Big contracts evolve into mini contracts. Commission structures change. on and on. life is always changing, but Your strategy is just a principle YOU always follow. it's YOUR thing. And just like you, it must constantly adapt. But the principle never changes. Knowing it's YOUR thing and adhering to the principle is important when the whole world is moving against you.