Can one strategy work "most of the time" in any market condition?

[joeltrades]

Hi, After trying many different strategies for more than 6 months, it feels like there's no one winning strategy that mostly works. Some strategies work really well for a few weeks, and then go through a cold period - both on the long and short side, small or large caps.

Books like "Trading in the zone" say that the market does not have any bearing on its past and every day is a new day - but this is clearly not the case as we can see that in the summer months, there is a stretch of choppiness. And other stretches of "cold" and "hot" periods confirm this.

My question is, how do we cope with this? How do we know when the market is even changing and what the current condition is? I am just looking for a simple strategy that works "fairly well". I don't want millions or lambos, just want consistency.

Also please don't reply with responses like "Trading requires discipline" for my consistency question. I know all that theory about risk management pretty well TBH and I'm pretty good with following it in my experience. I feel like that's not enough and there's more to the changing markets that I am missing, than risk management.

 

[trend2009]

There is. But not easy to find.the best alternative is to use different strategy under different mkt conditions

 

[ValeryN]

Hi, After trying many different strategies for more than 6 months, it feels like there's no one winning strategy that mostly works. Some strategies work really well for a few weeks, and then go through a cold period - both on the long and short side, small or large caps.
...

No single strategy works all time.

Combining multiple uncorrelated strategies covering diverse set of market conditions is as close as it gets to a holy grail of trading.

I wrote quite a bit about this in Fully Automated Stocks Trading if you're interested.

 

[SimpleMeLike]

Combining multiple uncorrelated strategies covering diverse set of market conditions is as close as it gets to a holy grail of trading.

Hello ValeryN,

Yes, you are absolutely correct on this statement. Very good point.

However, multiple uncorrelated strategies requires a decent size account balance between the $50k to $300k for the portfilio, correct?

Most newbie or retail automated traders do not have this size of account, what is your advice for this scenario? I reckon go find more money. Or build micro future algos portfolio.

This is why intraday discretionary trading has an advantage, IMO, because a trader can start from a small account and grow it and still obtain market experience while attempting to grow it.

Thank you,

 

[longandshort]

Even if you have 5k to trade you can split that among 2-5 different trade ideas that are not correlated.

 

[traider]

Me drive Uber until I have enough to trade.

 

[ValeryN]

Hello ValeryN,

Yes, you are absolutely correct on this statement. Very good point.

However, multiple uncorrelated strategies requires a decent size account balance between the $50k to $300k for the portfilio, correct?

Most newbie or retail automated traders do not have this size of account, what is your advice for this scenario? I reckon go find more money. Or build micro future algos portfolio.

This is why intraday discretionary trading has an advantage, IMO, because a trader can start from a small account and grow it and still obtain market experience while attempting to grow it.

Thank you,

This used to be true for futures traders but less so with introduction of micro and mini contracts. You can also diversify by time frame and long / short, entry and exit technics.

I trade stocks and there no such barrier there. With the exception of PDT (<25k) that limits your options on the type of strategies you can trade. You can still go long and short if I remember correctly. Just need to stick to a bit slower strategies. Introduction of fractional shares let's you even make 5$ bets on higher priced names like TSLA. I wouldn't touch highly liquid stuff with a small account though.

Being able to work with lower liquidity opportunities is the biggest advantage of a small retail account.

Smaller account is an edge.

 

[traider]

Food delivery also pays decent till you get an account of 200K

 

[MACD]

Hi, After trying many different strategies for more than 6 months, it feels like there's no one winning strategy that mostly works. Some strategies work really well for a few weeks, and then go through a cold period - both on the long and short side, small or large caps. (Please open the whole quote for replies.)
No "Strategy" Works.

Books like "Trading in the zone" say that the market does not have any bearing on its past and every day is a new day - but this is clearly not the case as we can see that in the summer months, there is a stretch of choppiness. And other stretches of "cold" and "hot" periods confirm this.

No offense, @joetrades, but you do not understand what is written in that book.

My question is, how do we cope with this? How do we know when the market is even changing and what the current condition is? I am just looking for a simple strategy that works "fairly well". I don't want millions or lambos, just want consistency.

@joetrades -- that was in large part the message of "Trading In the Zone"

Also please don't reply with responses like "Trading requires discipline" for my consistency question. I know all that theory about risk management pretty well TBH and I'm pretty good with following it in my experience. I feel like that's not enough and there's more to the changing markets that I am missing, than risk management.

Correct Joe, It has little to do with "Risk Management"

As to the How to do is what you are really Seeking. It will take a huge amount of posting and explanation, perhaps I may start a multi-page thread to explain.

You obviously are taking a careful and studious approach. Keep working and be as you are Very Skeptical of what you see in ET as well as the other know it all posts such as on YouTube. Best with good luck...

 

[easymon1]

I don't want millions or lambos, just want consistency.

What timeframe charts do you like to trade?