Holy Grail Strategy (knowledge vs. opinion)

Quote from RockRudy:

We got little bit sidetracked, so let me rephrase my last question. Thank you all for participation. I am learning a lot.

Let's focus from now on, on a definition of a good strategy. What is the definition? Please try to asnwer the following questions:

A good strategy :

a) has to be combined with good money management system before it works (yes/no)

b) works all the time at a specified market vs. statistically most of the time (always winner vs. always winner in the long run)

c) Can be completely automated (yes/no). Once a strategy is developed it does not need any human input/modification in order to "work". It is left alone and it makes money (yes/no)

d) Have to (!!!) utilize different trading strategies such as going long at times and also going short at other times, or a combination of options and commodity trading vs. simply going long only or going short only or call options only or put options only etc.

e) anything else
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a) No.
b) Depends on the traders needs and tolerances. I like yes as measured on a daily basis.
c) No.
d) No.
 
I still would like to challenge other successful traders to answer those questions.

Kiwi-trader:
can you elaborate on point c). If a good and developed strategy cannot be left alone to trade with just a mere human supervision, what kind of human involvement is required? My point is that you call strategy a good one, but you still cannot leave it alone. While I am not refuting your answer I am looking for some elaboration.

Thank you.
 
Discretionary trading can be better than system trading because you can take context into account. I can program my triggers and basic exits but not all the contextual issues that take it from 50% win rate to 75% win rate.

And, like many, I enjoy trading.
 
Hi Rudy,

To answer your questions:

a) Money management is absolutely crucial - you could have an excellent system that generates superb entry signals, but if you trade those signals badly by over-investing or managing your exits poorly, then your excellent system is worth nothing.

b) Basically I would say yes - the system should work all the time on a specific market. If the rules of the market that you're trading change, then your system may have to change with it.

c) Yes and no - some mechanical strategies can be completely automated and left to run on something like Tradestation. Personally, I like to have some human input in my daily trading routine rather than rely on a computer 100% - I would say this is personal preference.

d) Not necessarily - I have traded a long-only system for the past 5 years with similar performance every year.


Hope this helps

Feel free to ask any more questions and I will do my best to answer them.


Thanks

Damian
U.S. Share Trader
 
the holy grail has been found and implemented by many. its having an edge that makes the money that you require consistently. ~m
 
The holy grail is an unbeatable system, and that can only come if you spent a great deal of time on the Law of Vibration. If you don't believe me see that on 1/09 - 1/11 there should be a minor top.
 
Quote from MarkBrown:

the holy grail has been found and implemented by many. its having an edge that makes the money that you require consistently. ~m
More...
If you reduce the definition of The Holy Grail to any consistently profitable trading system, that pretty much renders the definition meaningless.

I think the Holy Grail is best defined as the best possible trading system, which may not yet exist IRL but we'll never know for sure. Fortunately there are less-than-Grail systems that will still make money.
 
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