It has to be flawed, it has to be different and unique. Give it sensible rules for entry and exit confirmation that you have analyzed for some time, make the research and hard work to find something that you and only you can see a pattern from, and make it work. If you put in the time and effort there is a chance you can find your imperfect strategy. Develop it and fine-tune it. This is what forex is about. Stop looking for quick gains, stop thinking it’s easy. I won’t lie; there’s some luck involved in this, and that’s why I would advise against having this as your only financial cushion. But it can be rewarding when you finally find what works for you. And if you find a strategy that works for you, tell as few people as you can about it. A strategy everyone knows is a strategy that doesn’t work. Good luck and godspeed traders
My strategies imperfections make it perfect
Another “trader” who doesn’t understand the math behind trading.
In trading, NOTHING WORKS.
And that’s fine. It doesn’t have to always work.
It’s good enough if it only works 40 or 50% of the time.
With proper risk management, that’s all you need.
Simple math is the solution to profitable trading. Who would’ve thought?
@Zade
That depends on your definition of “what works.” Using a strategy that has the math behind it, validates that it does work.
I agree that proper risk management will get you far with most strategies, but not every strategy will work with just this. Especially with scalping strategies where spreads and commissions can eat into your profits.
Math is a key point but not the only thing.
@Shai
Definition of works is pretty straightforward.
And no… it won’t only get you far.
Risk management is the ONLY way to trade profitably.
I’m not saying that the risk structure part is all you need. But it’s the foundation.
Even with scalping.
If you can’t keep your losses smaller than your winners, or at least have fewer of them… you can’t make money. Period. Before spreads and commissions even touch you.
That simple.
@Zade
Agreed, risk management is needed to be profitable.
My point was simply that it’s not the only thing you need, to which you agree as well.
You do a great job of keeping it simple, because I find that most unprofitable traders just over complicate everything.
What works is what leads to sustained profits.
To be honest I just follow my moving averages on higher time frame, lots of day traders here and I commend them because that shit is hard work.