Evolving Strategy

[HATEtheRisk]

http://en.wikipedia.org/wiki/Internal_Market_(European_Union)

The European Union's (EU) Internal Market (sometimes known as the Single Market, formerly the Common Market) seeks to guarantee the free movement of goods, capital, services, and people – the EU's four freedoms – within the EU's 27 member states.[1]

 

[oldtime]

Quote from N54_Fan:

The mercanary concept is to point out that I do not care whether bulls or bears win the fight. I just want to be on the winning side....like a mercanary would.

As for evolving a strategy,...YES I adapt it to the market at hand. However, I have a system that I think works well in both choppy and trending markets by allowing for wider stops as the market trends more and more. Initially I use TIGHT stops and then as the move matures I get wider in my stops as I trail the market in the direction of my trade. So the more it trends the more paper profit I am willing to give up to allow myself room to get the meat out of the trend. In choppy markets I make small wins and in trends I make bigger wins.

I never use to use stops, but when I started trading forex I just couldn't stay awake long enough to watch it all the time. I ran the same system in a paper account with no stops and it was actually less volatile than the real account, because of the return to mean factor.

But you know the deal, want to run with no stops? Reduce size.

 

[HATEtheRisk]

Quote from oldtime:

I never use to use stops, but when I started trading forex I just couldn't stay awake long enough to watch it all the time. I ran the same system in a paper account with no stops and it was actually less volatile than the real account, because of the return to mean factor.

But you know the deal, want to run with no stops? Reduce size.

LOL.

i do the opposite, i run only with stops, hard ones and manuell or mental ones.
And i increase risk.

LOL.

Guess who makes more money.....

 

[oldtime]

Quote from HATEtheRisk:

http://en.wikipedia.org/wiki/Internal_Market_(European_Union)

The European Union's (EU) Internal Market (sometimes known as the Single Market, formerly the Common Market) seeks to guarantee the free movement of goods, capital, services, and people – the EU's four freedoms – within the EU's 27 member states.[1]

In spite of all the trouble, I would probably choose Greece. I like the women and even though I am a vegetarian I like lamb. but mostly I like the music. A very good balance between spirituality and eroticism, or what ever you call the desire for beautiful dark women. But then heck after six weeks there and you go up to Sweden and you would probably be knocked out by all the blondes.

 

[oldtime]

Quote from HATEtheRisk:

LOL.

i do the opposite, i run only with stops, hard ones and manuell or mental ones.
And i increase risk.

LOL.

Guess who makes more money.....

yeah, but you have time to make it all back if you lose it. That's why old people are more conservative.

 

[oldtime]

But getting back to Opie's post, I was wondering if any of you work with strategies that evolve over time, either based on results or just simply over time?

 

[SnakeEYE]

Quote from N54_Fan:

This is WAR!!....

ÕÓÅÐÎ!!...

 

[oldtime]

so this system i'm working on periodically reduces size on your biggest loser but it adds to your second biggest loser. It doesn't touch your biggest winner, but it adds to your second best winner.

You still need to come up with the big idea, but if you have an idea, it is curious how it adds size when things are going your way and reduces size when things get stagnant.

it's just a money management system to implement whenever you become 51% biased. You make less when you are outright right, but you lose less when you are outright wrong. But it gives you some staying power in the chop.

So that's just a simple beginners strategy that evolves over time based on results.

I was just wondering if any of you guys who get into it deep have any thoughts on strategies that evolve.

If you go to the EA forum you will see a kid who wrote an MT4 portfolio profit taker system which is what I use (just discretionary, don't have MT4) and is why I am kind of giddy and have nothing better to do but discuss obscure strategies because it takes quite a boring while to build up another portfolio.

 

[oldtime]

so whether you trade once an hour (which I would guess is the minimum) or once a week which for me would be the maximum (depending on size) it's a given that you will always take a loss, Because you always lighten up on the biggest loser (unless it is already down to minimum size.)

So the stop loss (which most traders are most concerned about) becomes a function of time and size rather than price.

 

[HATEtheRisk]

Quote from oldtime:

so whether you trade once an hour (which I would guess is the minimum) or once a week which for me would be the maximum (depending on size) it's a given that you will always take a loss, Because you always lighten up on the biggest loser (unless it is already down to minimum size.)

So the stop loss (which most traders are most concerned about) becomes a function of time and size rather than price.

Hi newtime,

Time is very important in my trading. I give my trades only a specific time for working.

That is called: Time Stop !!!

If time is over, i am out, because all odds are changing !!!

My trading is only about Price & Time, nothing else !!!

cheers