What strategy actually works? - page 15

New comment
 
Ryan L Johnson #:
how to adapt OTC FX code to a centralized futures market
To see the CME volumes?
Ryan L Johnson #:
I ended up "self-moderating."
It's painful (
 
Lucky Minayo:
Guys, I have been trading since 2011, I have tried nearly 2000 strategies, I have build almost 2000 Eas and indicators, on this olatform and on other platform, but I have not really found what works, what actually works? and does such a thing exists? 
After trying 2000 strategies, you should already realized that the problem is probably NOT the strategies anymore.

Most traders spend years searching for some mythical "holy grail" system that never loses.

It does not exist.

What actually works in trading is usually:
• risk management
• discipline
• consistency
• adapting to market conditions
• surviving long enough

That's the boring truth nobody wants to hear.

Because people would rather keep buying indicators and building new EAs every week thinking:
"This next one will finally unlock the market."

No. That's not gonna happen. Cuz:
Markets change.
Conditions change.
Volatility changes.

A some strategies can work really good for over 2 years and then completely die.

The traders who survive long term are usually NOT the ones with the most genius strategy.
They are the ones who know how to control risk, avoid emotional stupidity, and adapt when conditions shift.

And another harsh reality:
If someone built 2000 EAs and none worked long term… there is a high chance they were curve-fitting most of them without realizing it.

The market is very good at humiliating over-optimized systems.

 
AxelQuant #:
To see the CME volumes?
That is merely one element of the differences between OTC and centralized markets, and an easy one at that. Consider unique contract tick sizes, unique contract point sizes, unique contract expiration dates/last trading days, custom contract rollover code, risk of physical commodity settlement, etc.
 

Ryan, thanks for taking the time to reply. This is very insightful information. If you could go into more detail, I'd be very interested in reading it.

Or perhaps you could start a separate thread for this topic?

 
Alex Holloway #:
After trying 2000 strategies, you should already realized that the problem is probably NOT the strategies anymore.

Most traders spend years searching for some mythical "holy grail" system that never loses.

It does not exist.

What actually works in trading is usually:
• risk management
• discipline
• consistency
• adapting to market conditions
• surviving long enough

That's the boring truth nobody wants to hear.

Because people would rather keep buying indicators and building new EAs every week thinking:
"This next one will finally unlock the market."

No. That's not gonna happen. Cuz:
Markets change.
Conditions change.
Volatility changes.

A some strategies can work really good for over 2 years and then completely die.

That's why it's really important to understand markets and have experience with trading. There are many people on the market who just want a plug-n-play trading bot and to run it without understanding a single thing about trading and markets.

I spent three years studying financial markets before writing any line of code in this discipline.

 
AxelQuant #:

Ryan, thanks for taking the time to reply. This is very insightful information. If you could go into more detail, I'd be very interested in reading it.

Or perhaps you could start a separate thread for this topic?

Not at this time, unfortunately. A "How-To" on trading centralized futures in MT5 would be an entire book. Having said that, I may consider it at some point in the future (no pun intended).

Anyway, one more quick tidbit... Centralized futures broker-dealer's generally push out the Last price in place of the Bid price in their data feeds that are forwarded from the exchange. About 90% of the time, that is what causes troublesome FX indicators to fail in centralized futures markets.

 
Ryan L Johnson #:
I may consider it at some point in the future

Great! If you ever decide to write that book, it will definitely be an interesting read.

Ryan L Johnson #:
futures ... in the future

)

 

Over the long term, trend strategies (different types) perform well.
A combination of algorithms across different assets with low correlation + strict risk management.

Portfolio management and a systematic approach.
 
My take is...the system that works is the one which you are disciplined and patient to work with. But not only is it following the system, it's practice. You have to practice trading that system properly. When someone learns to dance, they can't do it properly at first. 
 
Lucky Minayo:
Guys, I have been trading since 2011, I have tried nearly 2000 strategies, I have build almost 2000 Eas and indicators, on this olatform and on other platform, but I have not really found what works, what actually works? and does such a thing exists? 

Its not about a perfect strategy. There is no holy grail that will make you money. If there was, don't you think a hedge fund would use it? Or everyone would use it? 

If I were you, I would focus on simple strategies that make sense. For example, following the trend on indices. Most of the time, they go up, don't they? And after you have found one, don't trade it standalone. Find more, create a portfolio out of them and trade them together. At the same time. With portfolio risk management in mind, not a single strategy risk per trade in mind.

1...8910111213141516
New comment