Disliked{quote} Nice discussion. You hit it on the head Pip with the statement "providing you can distinguish them and filter them "....which now steps into the world of curve fitting. I personally believe a truly robust strategy is a composite of both divergent and convergent systems that are 'switched on all the time" as the practice of 'measuring the state of the market' is something that only can be achieved after a sufficient data set has been provided....and you are inevitably always behind the 8 ball. If market conditions vacillate in both divergent...Ignored
I have yet to investigate risk weighted return in my 'journey'. I am at a point in my journey where I give up being a position trader trading 100+ floating positions designed to absorb market shocks but I am not there yet. I am still a bit of a believer in a hybrid approach to trend+countertrend following in a single account. I am attempting some tests this month to see if a combination of W1+D1+H4 via breakout (trend following) and H1+M30+M15+M5 bounce (countertrend). Entries are easy and universal for me. I am finding it's the exists that become tricky in a hybrid approach. Just curious.... how much % max drawdown you target for and how long have you been able to achieve it?
Staying in my lane...