Haven’t I thought about that? To not trade? But I’m ready to press on!
Is there anything like a best trading strategy?
- Thread starter Nealeliff
- Start date
Do you suggest for the beginning years at least, to diversify in different markets or learn all about one market or even just 1 currency pair? Thanks in advance.
I understand that it’s a zero sum market where not everybody can win. But many like me try to be on the winning side and are ready to put in the required effort to learn all the ropes.
I am gonna take that as trading in one segment or 1 pair to be a better off deal then
Thanks for the recommendation, will try it out.
Can start with same strategy for different markets. Robert Carver's books are good reference. Perry Kaufman book on Alpha Trading Profitable Strategies that Remove Directional risk is a good read to illustrate this concept.
For customised strategies specific to markets, you can look at Ernest Chan books.
Yes, in the quant space, diversification is the only free lunch to get higher risk adjusted returns. And you can lever up and down according to your risk. Of course you need to be aware of hidden theoretical tail risks. Example selling puts strategy is one. So don't over lever for this strategy.
Manage your strategies as a portfolio and preferably allocate capital to them using a risk parity approach. That will result in more consistent and sustainable returns streams. Remember that your overall returns are path dependent. Try not to suffer irrecoverable losses (30-50%).
If you backtest your strategy, carry out walk-forward analysis & bootstrapping. In fact, i wrote a python package recently for this.
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Don't diversify unless you want normal kind of passive returns. Just learn to trade 1 ticker and then once you master it then you can trade more...
The best trading strategy is doing the exact opposite of what Padutrader is doing!
His return:
November 2020: -91.92%
December 2020: -100%
Januari 2021: -98.17%
Imagine how much money you could have made!
Moral of the story, don't believe everything you read online and make sure to know if the person giving the advice is credible ...
Here's what you do...
Take a screenshot of the chart your watching, paste it into Paint... go to edit and click "flip image horizontal".
Then.... take your monitor and flip it upside down....
With me so far?
After that.... you frontal lobotomize your "5 minute prior" brain...
Then take every penny you own and trade what you see.
Works like a champ.
That, or you can just hit sell when you want to buy, or buy when you want to sell.
That way's quicker... and you won't spill your coffee flipping the monitor.
Good luck with the journey.
since you call it my recommendation i better point out a few things.....
.i found this book 13 years back...i am only now understanding it.
i kept the faith even after 13 years ....i know plenty of traders who have not and thrown the book away in disgust, way way earlier.
he gives a lot of set ups......it is up to you to choose which one/ones you want to trade.
brooks keeps making thousands of suggestions on how to trade ...we have to pick and choose what we want.......this people do not understand........he does not say "DO IT THIS WAY..... I DO IT THAT WAY......SO IT IS THE BEST ....I KNOW IT"
that is why people do not like him....do not understand him......
because you have to choose and make decisions.......this is what people hate. no spoon feeding...
you can trade H2 or wedge or trendlines.....or trends ...or all of them...
many teachers simplify ...if not students do not learn or understand.....but the problem here is students think 'ah ...it is simple ....i can do it' and then they find out they cant and bad mouth the teacher.
Brooks does not simplify. period.
he says it is this.....he tells it how it is.....if you cant understand it...try harder and harder or.....
find something else to do....
but one thing i can say,in short....i must say:
if you want to know about market and learn how to trade then this is THE only book you need ...look no further
if you need any help i am here you can PM me anytime or contact me here.
but understand that i am learning still....i am no trader ....not even a bad one....but i am expert on Brooks having studied nothing but him 24 hours aday for 13 years...why? maybe i am nuts
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