there are many misunderstandings regarding the 'flip coin' way.
Markets are fractals, this means they go in both directions all the time. there is NO MARKET DIRECTION. this does not exist.
To be able to tell a direction you must specify a TIME FRAME.
Therefore, a flip coin strategy MUST specify time frame (a limit in time) to be either right or wrong.
Then, you are only a third of the way. Because what makes a flip coin strategy work is money management, risk control and reward versus risk (which I see as 3 different aspects!).
a flip coin strategy DOES WORK. the problem is trader do not understand how it works.
several market wiz are successful (at least for a while) with a 30% win ratio. So a basic flip coin strategy is better at 50% win ratio. trouble is the money part is the most important and must be prepared carefully. in fact that becomes the system (not the entry!).
let me tell you this, many systems and software trading against you and making money are doing so with randomlike entries. sure we say it is a powerful analysis fractal or velocity or whatever to feel good (or sell it). but the truth is, these systems are only aimed at generating random entries, just trying to get close to 50% win ratio.
the money is made on the trade management.
And because most traders are not familiar or simply do not really understand the principle, 70-80% loose.
don't be offended, it is a long journey. I have been there, trying to break out and be always on the wrong side not understanding why.
in fact ALL the answers you are looking for are in this board. some answers are in masterbooks also mentioned on this site. The difficult part is to really get what the authors meant. And maybe there is only one way : trade, loose, keep losses small enough so you can stay in the game until you understand it.
neo
Markets are fractals, this means they go in both directions all the time. there is NO MARKET DIRECTION. this does not exist.
To be able to tell a direction you must specify a TIME FRAME.
Therefore, a flip coin strategy MUST specify time frame (a limit in time) to be either right or wrong.
Then, you are only a third of the way. Because what makes a flip coin strategy work is money management, risk control and reward versus risk (which I see as 3 different aspects!).
a flip coin strategy DOES WORK. the problem is trader do not understand how it works.
several market wiz are successful (at least for a while) with a 30% win ratio. So a basic flip coin strategy is better at 50% win ratio. trouble is the money part is the most important and must be prepared carefully. in fact that becomes the system (not the entry!).
let me tell you this, many systems and software trading against you and making money are doing so with randomlike entries. sure we say it is a powerful analysis fractal or velocity or whatever to feel good (or sell it). but the truth is, these systems are only aimed at generating random entries, just trying to get close to 50% win ratio.
the money is made on the trade management.
And because most traders are not familiar or simply do not really understand the principle, 70-80% loose.
don't be offended, it is a long journey. I have been there, trying to break out and be always on the wrong side not understanding why.
in fact ALL the answers you are looking for are in this board. some answers are in masterbooks also mentioned on this site. The difficult part is to really get what the authors meant. And maybe there is only one way : trade, loose, keep losses small enough so you can stay in the game until you understand it.
neo
