now now, be nice.
Can one strategy work "most of the time" in any market condition?
- Thread starter joeltrades
- Start date
A good/great, experienced, wise, trader should be able to trade, and make money, in any market condition. Complaining that the market only moves up, only moves down, only remains flat...is kind of dumb, and amateurish. Money is always being made in the market, every day...and money is always being lost in the market, every day. Where you choose to fall in that spectrum is entirely up to you.
The word Strategy in trading sounds gimmicky. You're either experienced and competent in what you are specifically trading, or you're not. You should run away from anyone who uses the word Strategy in a trading video or book or course. Most likely it's a gimmicky farce.
A single strategy sometimes never works out for the most part, so it is best to experiment as much as you can to find the closest that work well for such market conditions.
from 12/31/1999 to 12/31/2010 the spx earned 4.6percent if you reinvested the dividends. On a strictly price basis the spx lost 14percent but that’s not a fair comparison.
Further you are taking the peak of the bubbliest valuation against just after a recovery of the worst financial crisis since 1929. That’s cherry picked data. How did the spx do in the decade before 2000 and the decade after 2010?
and for the time period from 12/31/28-12/31/1945, the spx didn’t exist but Bloomberg did a hypothetical calculation. The spx price was down 28percent but with dividends reinvested in the index the spx was up 23percent (a cagr of 1.2percent). Not a great return but again cherry picking the peak before the worst financial crisis in history and encompassing the worst human calamity and economic destruction probably since the great plagued.
Good Morning SPX Options,
I agree with you as well with this marketing gimmicky word "Strategy". it does not help strictly thinking about this day to day
I really doubt that.
Trading strategies work only in certain conditions. The same working strategy cannot be successful during the trends and during flat markets. Such conditions are fundamentally different that is why you need different trading strtegies in order to trade all the time. However, perhaps, it depends on how we differentiate and denote 'a strategy'. Some people claim that a trading strategy is a combination of indicators and measures for proper analysis of the market and making proper decisions. If we take this definition, then he same trading strategy cannot be applicable to all the trading conditions simply because of the fact that there are different indicators for different purposes, like you cannot use the same indicators for the trends and for the flat market. Surely, you can but such trading will not bring you huge benefit.
However, If we denote a trading strategy as our reactions to the market conditions and price movements, then it can be the same. For example, my trading strategy consists of: analysing the market, choosing the right indicators for the current market conditions and making a right decision according to the analysis and indicators. Can it be called a trading strategy? That is the problem of definition.
Still, I should say, the same arsenal of metrics and methods cannot be applied to all market situations.
Trading strategies work only in certain conditions. The same working strategy cannot be successful during the trends and during flat markets. Such conditions are fundamentally different that is why you need different trading strtegies in order to trade all the time. However, perhaps, it depends on how we differentiate and denote 'a strategy'. Some people claim that a trading strategy is a combination of indicators and measures for proper analysis of the market and making proper decisions. If we take this definition, then he same trading strategy cannot be applicable to all the trading conditions simply because of the fact that there are different indicators for different purposes, like you cannot use the same indicators for the trends and for the flat market. Surely, you can but such trading will not bring you huge benefit.
However, If we denote a trading strategy as our reactions to the market conditions and price movements, then it can be the same. For example, my trading strategy consists of: analysing the market, choosing the right indicators for the current market conditions and making a right decision according to the analysis and indicators. Can it be called a trading strategy? That is the problem of definition.
Still, I should say, the same arsenal of metrics and methods cannot be applied to all market situations.
The market is very broad and changes can happen at any point of time from anywhere. The best way to cope up with the ever changing market is to have multiple strategies under your sleeves or if you have enough experience try integrating them together while executing any trade, TBH i have never traded with one strategy i always have a plan B to save my day and bring me consistent profits.
I don't think that one strategy is able to work on various market conditions. Your strategy should be dependent on market conditions actually. If you see that something goes worng you just need to edit a bit your strategy and if you see that in the market there is a long-lasting trend, you have to create new strategy, but don't forget about the first one. It's kinds difficult to sort out with strategies, however I guess that everything comes with experience. If you will trade with a help of one strategy which won't be edited or something, then you take too much risks on you, because market conditions always affect strategies.
@Hellbringer Your strategy sounds good on paper but in reality no trader can switch his strategy in the next second or even tweak it. Yes there has to be a backup plan like putting up stop loss on to your trade for if anything goes wrong. But these two strategy theories make no sense to me.