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St-1
This long Easter weekend I invented my own trading strategy; actually it was more like a sudden drawing together in my mind of ideas I've had for ages. I've decided to give this strategy the glorious name of:
ST-1 (Super Trader One) I spent hours scrolling through my charts once I set it up and the logic seems sound enough (although this is easy looking back in time). It is not like anything I've seen before in any of these crappy Ebooks, i.e. moving average crossover blah blah. It seems to flash between 1 - 3 signals per day, and I believe it is based on sound market principles. The next thing will be to forward test it and see if it actually works according to the theory or if it is just drivel (I've had lots of these brainwaves before, but like I said this method has been brewing in my mind for a long time). These ideas came together because I was mulling over a common problem that I believe I see in many of the other strategies I've read about/used, so in an effort to overcome this common problem ST-1 has been born. Actually there are a few problems such as: a) Entering late. b) Systems are mostly momentum-chasing / breakout based (see entering late). c) Exit timing problems. I think entering late is a big one because so many of them are based on some combination of EMA crossover or momentum chasing /break-out variant. The mindset is "catch some of the move". Of course, pile onto this a plethora of money management, profit/loss and risk/reward ratio problems AND the brokers edge (the spread) and you have a perfect recipe for disaster. These are the issues I've been mulling over. I had previously been unwilling to get into inventing and testing my own strategies because I basically felt unqualified to do it - but then after trading other peoples strategies and watching them fail (for the above reasons), I now give myself permission to try my own ideas. I will now forward test ST-1 until the end of April and report any interesting results. |
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