What is the simplest trading strategy?

[kut2k2]

My vote is for Donchian channel breakouts for two reasons:

It can be reduced to a single parameter.
You can avoid that stop-and-reverse nonsense.

DCB strategy:

Go long when the current close equals the n-day highest close.
Exit long when the current close touches or falls below the median price.

Go short when the current close equals the n-day lowest close.
Exit short when the current close touches or rises above the median price.

The median is the average of the n-day highest close and the n-day lowest close.

 

[MarkyMark$]

Buy and hope.

Sell and hope.

Can't get any simpler.

 

[Crude Man]

the simplest strategy is to buy or sell with the trend. seriously. this is it. does not get any simpler.

 

[kut2k2]

Buy and hope.

Sell and hope.

Can't get any simpler.

Sadly, hope is not a strategy.

 

[kut2k2]

the simplest strategy is to buy or sell with the trend. seriously. this is it. does not get any simpler.

Trade With The Trend is a great metastrategy but to implement it, you need something more detailed.

 

[dom993]

I would say the *simplest* strategy is the Opening Range Breakout ... it is kinda variation on the theme buy/sell & hope, with no guess-work on whether one should buy or sell.

 

[kut2k2]

I would say the *simplest* strategy is the Opening Range Breakout ... it is kinda variation on the theme buy/sell & hope, with no guess-work on whether one should buy or sell.

What are the details of the ORB strategy?

 

[dom993]

ORB:

- pick a time horizon for your trades - classic is day, but that can be just as well weekly, monthly, or hourly
- define how long the Opening Range will be - this is the main parameter
- once the Opening Range is set, place a stop order just outside of the OR in each direction - the distance from those 2 stops to the OR is the 2nd parameter
- when the trade is entered through one of those 2 stops, the other one becomes the trade stop
- exit at the end of the time horizon - or when stopped

The classic usage of ORB uses 1-day as time-horizon, and anywhere between 5-min .. 1-hour to define the Opening-Range.

Lots of additions can be made to the basic ORB strategy, in particular:
- trade management (although in most cases, it will defeat the purpose, which is to capture trend days when they occur)
- trade selection (for example, use an NR4 or NR7 filter, so that ORB is only used after a period of volatility reduction)

 

[kut2k2]

ORB:

- pick a time horizon for your trades - classic is day, but that can be just as well weekly, monthly, or hourly
- define how long the Opening Range will be - this is the main parameter
- once the Opening Range is set, place a stop order just outside of the OR in each direction - the distance from those 2 stops to the OR is the 2nd parameter
- when the trade is entered through one of those 2 stops, the other one becomes the trade stop
- exit at the end of the time horizon - or when stopped

The classic usage of ORB uses 1-day as time-horizon, and anywhere between 5-min .. 1-hour to define the Opening-Range.

Lots of additions can be made to the basic ORB strategy, in particular:
- trade management (although in most cases, it will defeat the purpose, which is to capture trend days when they occur)
- trade selection (for example, use an NR4 or NR7 filter, so that ORB is only used after a period of volatility reduction)

You seriously think this is simpler than Donchian channels? uh, okay.

 

[jack hershey]

Other:

Use volume to determine turns.

Analyze what action to take on a turn: reverse, early entry, hold thru or sideline.