Why do 5% of Traders Win?

Quote from achilles28:

Try lower time frames. I don't code art. I quantify simple relationships that compose the larger picture. It also helped to include a fail/reverse clause into programs. Another tip: add to winners, Livermore-style. Pyramiding works so the initial trade is only a fraction of the total position. That way, when you're wrong, you're wrong for a penny. Right, right for a pound etc..
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Good insights (all of the prior posts you made here), IMO.:)

The only issue I have as a retail trader, is that while I agree there are many good edges present in much lower time scales (superior to higher, such as autocorrelation, for example), the practical issues, like getting filled, size, slippage, comm. etc can supersede theoretical edges based on back-testing historical data.:(
 
Quote from achilles28:

np

One of the keys is fail = reverse. Most traders can't tack when the market does. Either on a failed reversal (pullback), or a failed pullback (reverse). Largely, they follow patterns, but wed themselves to the trade. When the market throws it back, they can't adapt = stops get run. That's where algos are great.
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Yea, playing failed patterns is quite profitable art by itself.
 
Quote from cornixforex:

Yea, playing failed patterns is quite profitable art by itself.
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Very true. And there's so much fertile ground there. Indicator failures (MA, RSI, Bollinger etc), pattern failures (h&s, triangles, flags, wedges etc), candle pattern failures (inside, engulfing, dojis etc), classic TA failures (trendline, 123, support and resistance), price action failures (hh ll, lh hl etc).
 
Quote from achilles28:

Very true. And there's so much fertile ground there. Indicator failures (MA, RSI, Bollinger etc), pattern failures (h&s, triangles, flags, wedges etc), candle pattern failures (inside, engulfing, dojis etc), classic TA failures (trendline, 123, support and resistance), price action failures (hh ll, lh hl etc).
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As I specialize mostly in price action, can confirm that failures of classic price action patterns can be very fruitful, especially when reversal pattern fails during a strong trend.

I posted examples of such trades in my journal last week.
 
Quote from cornixforex:

As I specialize mostly in price action, can confirm that failures of classic price action patterns can be very fruitful, especially when reversal pattern fails during a strong trend.
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Ya, exactly. We trade similar setups....Cheers :)
 
Quote from achilles28:

Ya, exactly. We trade similar setups....Cheers :)
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It's always the same price action on the chart. Just not everybody sees it. :D
 
Quote from cornixforex:

It's always the same price action on the chart. Just not everybody sees it. :D
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haha thank God for that :p

Traders see patterns in every candle, where often, it's simply random. It trips them up... etc ;)
 
Quote from achilles28:

haha thank God for that :p

Traders see patterns in every candle, where often, it's simply random. It trips them up... etc ;)
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Yea, and no secrets, all it takes to distinguish randomness from what contains edge is screen time. Just a lot of screen time. :)
 
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