Profitable Startegy

[mfuetterer]

I'm kinda frustrated.
All strategies I tried are in the end not profitable.
I've looked at and implemented several strategies found in books or on the net, but as said before, none of them were profitable.

Played with SL and TP parameters, but little luck.

Tried several indicators (after getting known them, not just randomly).

I really would appreciate any comment on how you find and implement profitable strategies.
Thanks
M

[moreirajbn]

@mfuetterer

All strategies on books, magazines, internet, forums, whatsapp and telegram have been extensively tested and put to trial for years. If they ever had an edge, it's gone because someone else has already arbitraged out the advantage, and the late adopters will only waste time and money trying strategies that are available to everyone.

If you are looking for profitable strategies, the only way is to develop something unique, out of ordinary, that only you or very, very FEW people know. Once it becomes public, it's dead....

So, my humble suggestion is for you to try completely weird stuff, forget the tight stop losses or even using stops at all (decreasing leverage levels and letting the trade runs) and using time stops rather than financial stops.

A few weird ideas that may inspire you:

• what happens if you buy USDSGD at 10:00 and exit 16:00 ? no stops, no targets.... just buy at 10 and close at 16.... what if you change the entry / exit times?
• what if you sell Dax on Monday and exit on Friday? what if you sell Tuesday, Wednesday or thursday? does it help?
• what happens if there are 5 up days (close > open) in a row ? should day 6 be an up or down day?

Good luck

[mfuetterer]

Thanks, @moreirajbn!

Different kind of thinking.
I thought those things all traders do will enhance the chance, because of self-fulfilling prophecy aspects.
A resistant line is only a resistant line because a lot of traders see and respect it otherwise, it just would be a line ;-).

[moreirajbn]

@mfuetterer

If all traders think a support level is a support level, it will be a support level, BUT ONLY THE FIRST to act will profit from it.... the late ones will, well, be late, and end up selling too low or buying too high... there are millions of people and thousands of institutions looking at the markets at any point in time, so for you to be early on a trade, you can't wait until it's confirmed, because the confirmation is a result of the entries from the very few people/institutions that will actually profit from it.

In other words: support/resistance levels look perfect in hindsight, but you only know it worked afterwards...

To profit from it you need a model with predictive power walking forward... and finding such model is much much harder than most people think.

[roar]

@moreirajbn
I like your thinking, I recognized myself there
Trading with robots is very different than manual trading - robot can never have the human ability to see beyond the price data, consider aspects outside the standard strategy, it just follows its path.
On the other hand, that is also something humans can never do: we can't analyze millions of price points in our heads. That is why robots should not follow the traditional price action rules, but to find some statistical edge, for example buying at 10 and selling at 4

[moreirajbn]

@roar

Yep... the traditional price action rules are awesome to show on youtube how well the guru is able to "predict" something he already knows the outcome, particularly when he hasn't put a single dollar in the game. Hahah.

Real trading is a little bit harder, when we are competing against Goldman Sachs and UBS.