How do you come up with new strategies?

Most strategies i learned during a trading course in my country. (Trend fallowing, recovering, hedging, etc.)
At least 1 strategy i developed while analizing charts, seeing some patterns, then again backtesting the patterns i discovered.. and so on.
Test, test, test, improve some entry and exit conditions.
Good luck!

do you still remember your first 100k day?

100k Day as in total accumulated profits, capital, total withdrawn? you need to be more specific =)

Honestly i dont even know if i achieved that number yet (as in total withdrawn), i just trade and withdraw what i make around the 30/40 days mark in order to cover my living expense, my elderly parents too, my hobbys and travels (im big into 4 wheeling and traveling/camping) and start the cycle again.. Being doing this for almost 4 years now full time since its my only income (well, 5 but the first one i was barely breaking even so that one doesnt count hehe)

What about you?? anything constructive to add to this thread based on your vast amount of experience in real live trading conditions? Care to share your first "100k day" experience with everyone?

Please enlight us =)

One may get a new idea for a strategy, however the new strategies or ideas may actually not be so new after all. The idea can be new to us, but variations may have been done 100's of times before by others. The difference is how well it has been done and how well one can approach it in their new way.

I think the process starts with being aware that a new idea for a strategy/system is to be pursued in order to have an open mind to the new ideas.

You will notice I write strategy/system, that is because others would have different meanings for these terms as they are not defined in the OP's original post. It is important to understand the definition for one's self.

Next, exposure or experience is needed. Either going over other strategies (successful or not), or simply chart time. Mindset (including discipline) is important too, as it can affect the profitability of a strategy/system which is also developed over time via experience.

From there, gather components for the strategy/system and test, test, test. Review, improve and test some more. This will also help build mindset, confidence and discipline in the new strategy/system.

I think it is best I provide a few YT resources below for those interested and keen that also contain some gems in my opinion.

Resource1: Short interview.
Resource2: Lots of things to consider by secretmindset.
Resource3: Building a profitable system lecture by livetrades.
Resource4: Definitions, and some info on building by duomoinitiative.
Resource5: Free system building training by scottphilips.
Resource6+++: Do your own search as there are plenty of other resources available online

Hope these help ^_^

With enough experience you'll of seen almost every system or strategy possible and they're all based on the same ideas being recycled... Once you have reached that level you can pick and choose what you want to implement in your strategy and backtest it

Thank you a lot for those amazing resourses. Much needed!!!

I have one strategy which works for me. Sometimes I also play on fundamentals, when I feel confident. However, I am using ideas from various sources.. i.e. forums, books, broker tips, to search for new ideas. Then I use demo account to test its earning potential.

I have been an analyst since my earliest memories, so there was little doubt I would end up here. To conquer Forex though was quite different from the Stock Market, but I knew it would be a math thing for me. I was actually more relieved to trade Forex since fundamentals were much less likely to influence trades during the day. I tried my normal trading methods, but they were too slow. I researched and tried other peoples' methods, but they were too inconsistent. Along the way though, I began to see the common methods that I discarded as being inefficient, so that caused me to keep moving in different directions than the herd. Eventually my analysis discovered some tools that were fairly consistent, so I began eliminating, forever, all the things that were not adequate to meet my goals. From there, I learned that even though I was more accurate, it was still not satisfying. Then I began to explore other platforms, in case they had other tools I had not seen yet that would work. That is when I discovered the Level II platform and better understood why I was not happy with my trading, lol. I was simply not trading in the same manner that most of the money was being traded. I was addicted to my form of trading though, so I did not want to begin trading like them for two major reasons. One, it looked mostly like guessing and the profiting did not seem apparently visible. Second, they were not trading their own money, so if they lost, it was no big deal. Not true for me. Recognizing a mismatch between trading data and methods, I began to systematically convert my graph so it could follow the activity of the market flow. Since volume does not truly exist in Forex, I had to abandon that luxury to instead use a cost analysis model. Since the market moves incrementally, and not as a scatterplot, all I had to do was reinvent a profit/loss line. But, since the market is also non-linear, that line had to be flexible. By creating such a tool, I was able to add probability calculations and further enhance my ability to predict market reverses. From there, it had to be tested on the live market, because anyone that has ever traded live knows it does not match the historical trading charts, lol. That is because as more data is created, the historical charts adjust to the additional calculations of the sample size, which makes lines move, lol. That reminds me. When you hear someone say indicators lag, lol, no, most of them update at the same time as a price candle. What "lags" is your view due to your sample size, and that really isn't lag either. Anyway, by identifying target candles of each cycle's apex, I began to finally be consistent.

I always had two goals to define how I created my strategy. 1) To win consistently. 2) The most frequent times I would not win consistently were from being trapped in consolidation or being head faked on a reverse. So, I had to be able to identify both situations in order to increase my consistency. Everything else: the tools, the analysis, and hours of work were eventually molded into a strategy.

' Strategy ' is a misleading term that causes inexperienced traders to assume that all they need to do to profit from the markets is to find a winning strategy. If only it was that simple.

Trading is much more complex than that, on so many different levels. If it wasn't, there would be many more successful traders out there.

A ' strategy ' is nothing more than the steady accumulation of knowledge which enables a trader, over time, to recognize clear trading opportunities presented by price action on any given instrument. Call this a strategy if you like, but it is not something that can be lent, borrowed, given away, or sold, any more than a pianist is able to sell his or her competence attained through years of hard work.

A winning strategy, therefore, can exist, but it exists only within each individual and comes only from within.

I agree with you. in my experience one have to learn and analyze charts and one should develop his own strategy. and do some backtest on simulator or with microlots. This will boost the trading game.

Create a repeatable process to measure your results. Once processes are repeatable they are measurable; and once they are measurable you can determine where potential problems are occurring so you can take steps to improve your processes. Becoming consistent and having repeatable processes in place is your ultimate goal for profit and survival.

You can come up with new strategy when you have rich experience not only of profits but also loss. True experience and exploring of a trader's mind comes in bad time where they tend to convert the loss into profit. Constant learners can definitely come up with good strategy.

Hi dk. I read this answer only now so first of all thank's for passing by and leave this post.

Please could you be more specific about that "profit/loss" line? What does it represent? Is it connected to equity or to the probability of a certain event happening? If so how did you come up with a certain value of probability?

As I mentioned to you a while ago, I had to took a statistics class at my university so I have a decent knowledge of descriptive and probabilistic statistics. Still studying some posts of yours and another user meanwhile. So, as you said in a post, the first thing I'll have to figure out is how to convert price chart into a disaggregate distribution, is that connected to the "profit/loss" line?

Thank's if you decide to answer, thank's even if you will not.
Wish you a good day.

Well that's one of those things a guy think's already know but there certainly more to know. I'll ponder on how to apply those concepts to the indicator.

Thank's for passing by dk. Wish you good day

I open the chart 5 min.
Then I mark several major points where price reversed during the day (high, low ... )
Then with the help of market replay I watch how different tools (time and sales, level 2 ...) behave at these points and try to find patterns.