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How many strategies does one need?

  • #41
  • Sep 27, 2015 1:17am Sep 27, 2015 1:17am
Quoting the redlion
{quote} you have very interesting thoughts here, so you add to your position (increase your risk exposure) when you see it advantageous whether be it intra-day or short/medium term, then scale back your investment to limit your risk. if you are trading different asset classes and you are indeed out performing the market, that is great. I think that is what we all hope to accomplish.
In some instances I do this....but there tends to be a solution for all occassions dependent on how I try and flavour my equity curve. Portfolio diversification has opened up a whole new world to me so you can perhaps understand if I said I find the secret sauce in diversification as opposed to trading style. Interesting discussion redlion. Thanks greatly for this :-)
  • #42
  • Sep 27, 2015 1:18am Sep 27, 2015 1:18am
Quoting the redlion
{quote} we are going around in circles here, if your conclusion is the above statement ... I don't think we disagree. The question is can you actually spot such opportunities.
Yes.
  • #43
  • Sep 27, 2015 1:24am Sep 27, 2015 1:24am
Quoting Copernicus
{quote} I see where you are coming from but one of the important features of diversification in flattening the equity curve is the ability to 'pound for pound' increase your trade frequency by reducing your capital exposure. The offsets provided by diversification (eg. one instrument going long and another instrument going short) reduces your margin allowing you to hypothetically get 2 trades for 1 with the same level of capital. Another benefit IMO is what Atokys is talking about but the clash in mindsets occurs between the theory (what you are...
your first statement alludes to "Nedging" I think that concept has been dis-proven.

I never stated that you can have a correlation of 1 (perfect correlation) otherwise then it is exactly identical to your first asset.

Trading on the Edges of the gausian distribution? this is a mean reverting strategy it seems you're talking about. Edges of the gausian at sigma 3 and above are extremely rare events otherwise known as black swan events the problem with these events is that you don't know whether it is a bad day for Bear Stearns and Lehman brothers or they are indeed going bankrupt.
AVT INVENIAM VIAM AVT FACIAM
  • #44
  • Sep 27, 2015 1:29am Sep 27, 2015 1:29am
Quoting kcarmack
How many strategies does one person need? And how many currencies is enough?
One strategy. Then train your family/friends and use a trade copier. Simple. Good Luck
You cannot be extraordinary by being normal
  • #45
  • Sep 27, 2015 1:30am Sep 27, 2015 1:30am
Quoting Atokys
{quote} Yes.

if you can see the difference real time between
Attached Image (click to enlarge)
Click to Enlarge Name: eurdaily returns.png Size: 8 KB


and

Attached Image (click to enlarge)
Click to Enlarge Name: eurodaily returns.png Size: 11 KB


then you will be rich soon.
AVT INVENIAM VIAM AVT FACIAM
  • #46
  • Sep 27, 2015 1:32am Sep 27, 2015 1:32am
Quoting the redlion
{quote} if you can see the difference real time between {image} and {image} then you will be rich soon.
Your point?
  • #47
  • Edited 3:16am Sep 27, 2015 1:32am | Edited 3:16am
Quoting the redlion
{quote} your first statement alludes to "Nedging" I think that concept has been dis-proven. I never stated that you can have a correlation of 1 (perfect correlation) otherwise then it is exactly identical to your first asset. Trading on the Edges of the gausian distribution? this is a mean reverting strategy it seems you're talking about. Edges of the gausian at sigma 3 and above are extremely rare events otherwise known as black swan events the problem with these events is that you don't know whether it is a bad day for Bear Stearns and Lehman...
Yes, definately I trade the 'crisis' events. That is where alpha comes from my approach and it is very few and far between. Diversification across as wide a possible investment universe allows me to hopefully capitalise on this opportunity when it occurs such as 2008, 2014 etc. Beta is delivered as a base level income stream purely from periodic abnormal volatility (that I wouldn't class as crisis events). It is therefore essential that I don't overtrade and stay in the game as long as possible and I do this by being incredibly stingy with my trade capital and setting my entry traps for breakouts above/below everyday volatility.

When the crisis event occurs, I throw correlation out the window and just seek to exploit any opportunity by jumping on board. That is my bread and butter in this trading game but you can see when this is not happening i have to live off coffee. I don't trade for cashflow (rather have recently given up due to finite capital constraints) but rather trade for capital appreciation over time hence to participate, I have alternate income sources and trade the long term. :-)
  • #48
  • Sep 27, 2015 1:33am Sep 27, 2015 1:33am
Quoting the redlion
{quote} if you can see the difference real time between {image} and {image} then you will be rich soon.
Pffft. Throw a standard deviation channel over the volatility to bring out the bias. :-)
  • #49
  • Sep 27, 2015 1:34am Sep 27, 2015 1:34am
How many strategies does one need?
answer: 2357 strategies.
could we start together counting them!!
  • #50
  • Sep 27, 2015 1:35am Sep 27, 2015 1:35am
Quoting Alraqeem
How many strategies does one need? answer: 2357 strategies.
I like your style.
  • #51
  • Sep 27, 2015 1:36am Sep 27, 2015 1:36am
Quoting Copernicus
{quote} I like your style.
my wife also do. she likes my face and my style.
  • #52
  • Sep 27, 2015 1:38am Sep 27, 2015 1:38am
Quoting Alraqeem
{quote} my wife also do. she likes my face and my style.
Double sided like. Most unusual :-)
  • #53
  • Sep 27, 2015 1:43am Sep 27, 2015 1:43am
Quoting FerruFx
You're asking the wrong questions ... 1 strategy on 1 pair making 1 pip per day is enough to be profitable ...
my opinion: 1 strategy on 1 pair making 1 pip per day is enough to be another creature other than human being.

is it very clear that, his question- has emerged from deep experience and suffer.

personally i earn 5000 pips / day.
next month i think to jump 100,000 pips/day. let's play

he ask the correct question. "philosophical question"
  • #54
  • Sep 27, 2015 2:09am Sep 27, 2015 2:09am
The domain of speculative trading defies conventional statistical approaches. Price movement is an unpredictable chain of evolving perception rather than an effect produced by a cause known in advance. People who seek to solve the market as if it is a mystery are just seeking to solve their own thoughts and feelings rather than go with the flow.
  • #55
  • Sep 27, 2015 2:17am Sep 27, 2015 2:17am
Quoting Alraqeem
{quote} my opinion: 1 strategy on 1 pair making 1 pip per day is enough to be another creature other than human being. is it very clear that, his question- has emerged from deep experience and suffer. personally i earn 5000 pips / day. next month i think to jump 100,000 pips/day. let's play he ask the correct question. "philosophical question"
Placing multiple orders at once is not part of your pip count. It is trade size. If you make 20 GBPUSD trades at 1 lot each and profit 20 pips each, then you made 20 pips. You did not make 400 pips. You could have opened 1 trade for 20 lots and made 20 pips. It is the same value. So, 5000 pips is how many really? 50? You might be impressed with your fantasy math, but it is not the real way to measure pip earnings.

Pips are the distance the market moved, not how much money you made. The market did NOT move 5000 pips.
You cannot be extraordinary by being normal
  • #56
  • Sep 27, 2015 2:31am Sep 27, 2015 2:31am
Quoting skyway
ONE!!! ' I fear not the man who practiced 10,000 kicks once, but I fear the man who practiced ONE kick 10,000 times' - Bruce Lee
Spot on. Laser and light rays?

FOCUS and ask and you will receive. Keep on asking, you will receive, ask again
if have not receive but stay focus asking for the trend.
Then do the ONLY one, follow the trend.

Been doing that since 1988! Im bless for asking.
Life is beautiful and wonderful.
  • #57
  • Sep 27, 2015 2:54am Sep 27, 2015 2:54am
Flip a coin.

Heads buy - Tails sell

https://www.random.org/coins/?num=1&cur=60-gbp.1pound
Attached Image
Learn to like losses
  • #58
  • Sep 27, 2015 3:02am Sep 27, 2015 3:02am
Quoting Atokys
The domain of speculative trading defies conventional statistical approaches. Price movement is an unpredictable chain of evolving perception rather than an effect produced by a cause known in advance. People who seek to solve the market as if it is a mystery are just seeking to solve their own thoughts and feelings rather than go with the flow.
I am going to frame this and pin it too my wall Mr reverse Seykota without an 'e'. :-)
  • #59
  • Sep 27, 2015 5:50am Sep 27, 2015 5:50am
Quoting The Fool
One: Don't Lose Money.
Sadly the only way to never lose money is not to play. I believe that one needs to change strategies with market conditions. Most strategies work under the correct market conditions. All strategies fail with the wrong market conditions.
Kill the ego, or it will kill the mission.
  • #60
  • Sep 27, 2015 8:09am Sep 27, 2015 8:09am
Quoting Copernicus
{quote} I am going to frame this and pin it too my wall Mr reverse Seykota without an 'e'. :-)
lol
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