STRATEGY SPECIALIZATION OR DIVERSIFICATION

[Dreamland9]

Please I'm new to fx trading and getting overwhelmed with the idea of creating multiple strategies. I want to ask,

1. is it better for a trader to master a few strategies (3-6) and specialize on them refining and updating new ways to trade those particular strategies (cause Market do change) so as to have an edge in the market

Or

2. a trade most continuously create new strategies everytime to have an edge in the market (cause Market do change)

[l'andorrà]

You will get as many different answers as traders. My personal opinion is going full for option 2 by not completely rule out option 1. Not sure my reply can be very helpful, though.

[Dreamland9]

@l-andorrà
You mean I should continuously create new strategies but have few I specialize on

[biztet]

Just do it separately. After optimising, only then you decide which can run together.

[Dreamland9]

@biztet
Thanks alot

[l'andorrà]

@Dreamland9 Essentially, yes.

[sktsec]

@Dreamland9
If you have many ideas, you might finally go through a lot of strategies

Perhaps more importantly is to maintain 2 or 3 well designed EA as template. So when you have any new ideas, you just need to modify the parts relating to the trading logic

For example, any template may contain input options for tp, sl, spread limit, max number of trades, reverse signal direction, buy or sell only, close old trades of opposite direction, trading time, etc

[OntradingX]

@Dreamland9
In my opinion, I would consider you to specialize in avoiding what the majority do, as the majority is losing in the market. They say that less than 5% of people lose money.
I'm working in the Forex market and I think that when I talk about specializing I mean delving into all aspects of a parity, for example EURUSD, OR XAUUSD etc... And from there you go for a strategy that you believe is profitable and finally focus on management, it doesn't need to be 3, 4 5, 6 strategies because in the end just 1 strategy being profitable will save you time and be more focused on your plan, a vast majority are developing different strategies and get lost in the objective The ultimate goal is to be profitable.

[Dreamland9]

@l-andorrà
Thanks alot

[Dreamland9]

I want to sincerely thank everyone for there opinions, I'm really grateful and I've learned alot.

I believe strategies are many but concepts are few
For e.g there may be thousands of strategies but they all follow one concept either a breakout,mean reversion, trend following concepts etc.
So I think I will just specialize on a concept (break out/pullbacks in the direction of the establishment trend and no counter trend strategies) and develope and refine new strategies to trade that concept.

[biztet]

Yes, thousands of strategies, but not all can be automated the best, and it's hard to avoid "counter trend" unless you have an idea how to read the market strength. For me, just avoid trading when an indicator shows overbought or oversold.

[Dreamland9]

@biztet
Thanks alot

[l'andorrà]

@Dreamland9 You're welcome.