If a trading strategy fails, why the opposite of the trading strategy also fail??

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Ning Liu
261
Ning Liu  

Here I want to raise a topic "if a trading strategy fails, why the opposite of the trading strategy also fail??

I have some code to do trading, certainly most of them loss money. Just curious, I reverse all the trading direction buy/sell and SL/TP, the exact opposite of the trading strategy also fail.

Could anyone explain this interesting trading process?

It is a open-mind free discussing. Any ideas are welcome!

iRick
187
iRick  

The spread/commissions etc come into play


Kinda like the Green 0 on the roulette wheel

Alain Verleyen
36034
Alain Verleyen  
Please do some research before posting, this has been discussed numerous time, for years.
Lorentzos Roussos
22987
Lorentzos Roussos  
Interesting topic 
In general (in optimization) when you change parameters and you get the same "bland" result it indicates those parameters are a bit irrelevant to the issue.
The same can be observed in Machine learning where features that tend to 50% are useless ( i kinda butchered the example there a bit )
Chris Mukengeshayi
1464
Chris Mukengeshayi  
Ning Liu:

Here I want to raise a topic "if a trading strategy fails, why the opposite of the trading strategy also fail??

I have some code to do trading, certainly most of them loss money. Just curious, I reverse all the trading direction buy/sell and SL/TP, the exact opposite of the trading strategy also fail.

Could anyone explain this interesting trading process?

It is a open-mind free discussing. Any ideas are welcome!

Most people don't know how to use an EA. Before you think about using an EA you should first understand why and when should an EA proceed with buying and selling.

An EA should be an automate strategy of a manual trading strategy. In order to have a manual and successful trading strategy, you first need to understand and tell your entry and exit point.

If you can't tell and explain your entry and exit point, it simply mean you have a loosing EA.  

Hatem Koshok
1668
Hatem Koshok  
I can tell you that i did that so many times by hand to know why it fails and the reason was mainly 99% of time because of spread and no other reason that you can imagine (only the spread)
Marco vd Heijden
Moderator
8153
Marco vd Heijden  

Trading dynamics.

A crappy exit strategy will work like crap in both directions.


Waseem Raza
9995
Waseem Raza  
Ning Liu:

Here I want to raise a topic "if a trading strategy fails, why the opposite of the trading strategy also fail??

I have some code to do trading, certainly most of them loss money. Just curious, I reverse all the trading direction buy/sell and SL/TP, the exact opposite of the trading strategy also fail.

Could anyone explain this interesting trading process?

It is a open-mind free discussing. Any ideas are welcome!

Whenever you will create to gain more before right time every strategy will fail 

pmemari
36
pmemari  
only because of the spread
Sergey Golubev
Moderator
106058
Sergey Golubev  
pmemari:
only because of the spread

and bid/ask

Ning Liu
261
Ning Liu  

My understanding is that, if the failure of the strategy is due to the wrong trading direction, certainly we reverse the direction will improve the performance. However, if the failure i due to other factor, simply reversing the direction cannot help.

Trading is a long series of action, from this point of view, even a small mistake, will be enlarged by the repeating series. Trading direction is only a very small part of the strategy.

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