What to do with a used to be very profitable but broken strategy

[NoDoji]

Quote from Sky123987:

Then in mid september the trades didn't go as planned and especially with the volatility I really got hammered, October passed, November passed, and december passed, and the trades continued the opposite way.

Sky, I'm curious why volatility caused your system to turn on you. As you know, we're developing an automated system based on a particular strategy that should hold up under any market condition because a) it trades both long and short, and b) I haven't seen any evidence that the setups which would trigger entries and exits are affected by volatility. However, I can see where volatility could possibly result in enough slippage to seriously impact profitability.

It seems that if you could pinpoint the relationship between volatility and your strategy you could salvage your system.

 

[slapshot]

Quote from ChkitOut:

So it sounds like you're saying you have a strategy that works when certain market conditions exist.

Uhh, not to sound rude but it sounds like your system is no different than a zillion others that work and then stop working and then work and then stop working and then work...........

Isn't this why the only successful systems traders I have heard of all have 6 or 7 different style systems running at the same time? So that while some are losing, the others can win?

IMO, you can't build a system that performs good under trending conditions and also performs well under ranging or volitile conditions - they are polar opposites.

Just my .02 - correct me if I am wrong, not an expert on systems

 

[big_cabrito]

Quote from austinp:

<i>"3. put a negative in for on of the variables and take the opposite of every trade signal. the wonders of profitable trading revealed. all your losers will become winners"</i>

False. Logical assumption on its face... does not hold true in real time with real money

What he said...

Quote from NoDoji:

a particular strategy ... should hold up under any market condition because a) it trades both long and short, and b) I haven't seen any evidence that the setups which would trigger entries and exits are affected by volatility.

It seems that if you could pinpoint the relationship between volatility and your strategy you could salvage your system.

What he said....

Quote from slapshot:

IMO, you can't build a system that performs good under trending conditions and also performs well under ranging ... conditions - they are polar opposites.

What he said....

Sorry I've got nothing original to add... it's already been said.

 

[henry76]

a system that isn't profitable , now there's a thing