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whether to change the trading strategy from time to time?

  • #1
  • First Post: Feb 10, 2016 3:05pm Feb 10, 2016 3:05pm
Hello, dear visitors.

I have often faced such a problem, when the trading strategy, which held a few months suddenly ceases to generate income. I started to look for new solutions and it takes time and money.

What do you think, whether in this case, to look for other options, or just stands to be patient?
  • #2
  • Feb 10, 2016 3:46pm Feb 10, 2016 3:46pm
First find out why it does not work. Are there changing conditions? Are your assumptions wrong? Why did it work when it did? Is there anyway you can improve it? Nevertheless, realize that no strategy works perfectly 100% of the time.

KP
Do your homework, follow the footprints of smart money
  • #3
  • Feb 10, 2016 4:50pm Feb 10, 2016 4:50pm
Most likely nothing has changed with your technique. Every few months the 4HR charts consolidate and the market's range flattens. It makes it appear that your strategy no longer works, but it is just because of the consolidation. Track the higher time frame's for when they break out, try your strategy again, and then determine if it works or not. When the strongest 4HR candle has a high/low of 16 pips, it is most likely the low market activity and not your strategy.

If you normally trade lower time frames, and the market flattens, and you still want to make profit, then move up to a higher time frame and trade it until the range increases. Remember, you only make money when the market is moving up or down and beyond your spread. When trading is flat, find the time frame that shows middle pips in an up/down pattern between recent highs and lows and trade it until conditions change again. Stay in tune with major fundamental market release dates and look for breakouts following the release. This could put your strategy back into play on your preferred time frame.

Another thing you can try is changing your currency pair. Usually there is some currency that has range, and you can move to it until your preferred one starts offering good trades again. Good Luck.
You cannot be extraordinary by being normal
  • #4
  • Feb 15, 2016 2:44am Feb 15, 2016 2:44am
Quoting dkrock
Most likely nothing has changed with your technique. Every few months the 4HR charts consolidate and the market's range flattens. It makes it appear that your strategy no longer works, but it is just because of the consolidation. Track the higher time frame's for when they break out, try your strategy again, and then determine if it works or not. When the strongest 4HR candle has a high/low of 16 pips, it is most likely the low market activity and not your strategy. If you normally trade lower time frames, and the market flattens, and you still...

I thought that the change in the market and different currencies - it is the first reason why any strategy stops working. It would be interesting to know how online visitors relate to a change in strategy. After all, you need to know a middle ground, because permanence - is also a way to success. And yet, I would like to ask around about the different strategies of the trend. This is my little social - trading experiment.
Here is an example. I trade mainly with the trend or when I'm pretty sure that will be the consolidation of the market. Defines the beginning of a trend or correction is very simple: With Grid Fibonacci, Ichimoku indicator (in JPY). Another very convenient Stochastic
  • #5
  • Feb 15, 2016 3:30am Feb 15, 2016 3:30am
Quoting DenForex
{quote} I thought that the change in the market and different currencies - it is the first reason why any strategy stops working. It would be interesting to know how online visitors relate to a change in strategy. After all, you need to know a middle ground, because permanence - is also a way to success. And yet, I would like to ask around about the different strategies of the trend. This is my little social - trading experiment. Here is an example. I trade mainly with the trend or when I'm pretty sure that will be the consolidation of the market....
I don't know what your strategy is, so I cannot offer much help to fix it.

I trade ranges. A trend for me is nothing more than a range on a higher time frame. On a lower time frame, it appears as an extended range. I trade reversals within what you would call a "trend". Sorry I cannot help much more than that. I was only trying to explain why your technique might appear to fail. If you use broad values to capture "trends", then your signals are useless on ranges and consolidation. That is more of position trading, which I call buy and hold, and I do not trade like that. Good Luck figuring it out
You cannot be extraordinary by being normal
  • #6
  • Feb 15, 2016 3:08pm Feb 15, 2016 3:08pm
Quoting DenForex
Hello, dear visitors. I have often faced such a problem, when the trading strategy, which held a few months suddenly ceases to generate income. I started to look for new solutions and it takes time and money. What do you think, whether in this case, to look for other options, or just stands to be patient?
Have come to realize that forex is dynamic, ever changing. We need follow suit, that means advancing to more working strategies if need be. I had similar problem myself some time ago, until a friend showed me how to come up with good trading plan that works well.
Then sometimes our old strategy might just need a little touch, that's all.
  • #7
  • Feb 16, 2016 10:06am Feb 16, 2016 10:06am
Quoting Brill
{quote} Have come to realize that forex is dynamic, ever changing. We need follow suit, that means advancing to more working strategies if need be. I had similar problem myself some time ago, until a friend showed me how to come up with good trading plan that works well. Then sometimes our old strategy might just need a little touch, that's all.
Hello. Yes, sometime the strategy needs just a little changing for to work with new effect. Forex never standing and technologies and programs never stop in develop. Like a strategy might be changed for better work.
  • #8
  • Edited 10:55am Feb 16, 2016 10:21am | Edited 10:55am
NO one system will work in all conditions! There is no magic system..

Market can move in different ways.... market can grind slowly ..strong trend.. an bouncy trend, or can be flat for days/weeks , or whipsawing!

You must consider how the market is moving and if your system will work in current conditions.
No one system will work in all conditions!
Some systems even might work better in Asian trade , some might work better in London when liquidity is higher.

Rather then change a good system... Find what type of market your system does well in... and add it to your bag of tricks!
Then find new tricks for other market conditions..
TIP: Its best to zoom out look at the higher time frames to see the current condition.


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The only system that will work is one designed by and for yourself.
  • #9
  • Feb 17, 2016 9:20am Feb 17, 2016 9:20am
Quoting bloodpoodle
NO one system will work in all conditions! There is no magic system.. Market can move in different ways.... market can grind slowly ..strong trend.. an bouncy trend, or can be flat for days/weeks , or whipsawing! You must consider how the market is moving and if your system will work in current conditions. No one system will work in all conditions! Some systems even might work better in Asian trade , some might work better in London when liquidity is higher. Rather then change a good system... Find what type of market your system does well in......
Thanks for the answer. I agree. Much depends on the currency and in addition, the market fickle. Although, I would like to clarify that there is a theory Elliota. It states that the market moves in 5 waves, then he repeats his movement, so after a time one or the other will receive relevant again. If seen from the viewpoint of market figures and algorithm, it is possible to predict with a high probability of motion.
  • #10
  • Feb 19, 2016 11:16am Feb 19, 2016 11:16am
Quoting DenForex
Hello, dear visitors. I have often faced such a problem, when the trading strategy, which held a few months suddenly ceases to generate income. I started to look for new solutions and it takes time and money. What do you think, whether in this case, to look for other options, or just stands to be patient?
Strategy is definitely in need of change. The trader must be able to trade in any situation. A big plus when you use no plan, and feel the market.
  • #11
  • Feb 19, 2016 7:01pm Feb 19, 2016 7:01pm
That's why I stick with the long-term trend. I only trade in it's direction. This gives you an edge in with smaller time frame trading.

Look at the dailies and weekly charts of all the majors. There are several trend you can hope on right now and so many traders are not doing it!

Been at this long enough to know that trends are the number one advantage you can get in this market. If the market trends less then take profit quickly. It's still profit! Then when it picks up, let it run again. Keep it simple.

traderjoe
  • #12
  • Feb 22, 2016 2:54am Feb 22, 2016 2:54am
Quoting DenForex
Hello, dear visitors. I have often faced such a problem, when the trading strategy, which held a few months suddenly ceases to generate income. I started to look for new solutions and it takes time and money. What do you think, whether in this case, to look for other options, or just stands to be patient?
That is a problem many traders struggle with very often. A moving average based system may work very well in a trending market but fail in a range bound market. At the same time a Stochastic might give you great signals in a range bound market but result in many false signals in a trending market. The key is to decide which market you are going to trade. If you are going to trade a trending market, pick the appropriate strategy and stick to it and likewise for a range bound market.
Always follow the trend
  • #13
  • Feb 22, 2016 5:42am Feb 22, 2016 5:42am
Quoting trader.joe
That's why I stick with the long-term trend. I only trade in it's direction. This gives you an edge in with smaller time frame trading. Look at the dailies and weekly charts of all the majors. There are several trend you can hope on right now and so many traders are not doing it! Been at this long enough to know that trends are the number one advantage you can get in this market. If the market trends less then take profit quickly. It's still profit! Then when it picks up, let it run again. Keep it simple. traderjoe

Yes, you need to use every opportunity to trade. And traders need to consider different timeframes. But I am sure that every trader took for themselves a convenient time option. To catch the trend and time correction, it is necessary to feel the market and choose the right indicators.
  • #14
  • Feb 22, 2016 5:50am Feb 22, 2016 5:50am
Quoting forexonpoint
{quote} That is a problem many traders struggle with very often. A moving average based system may work very well in a trending market but fail in a range bound market. At the same time a Stochastic might give you great signals in a range bound market but result in many false signals in a trending market. The key is to decide which market you are going to trade. If you are going to trade a trending market, pick the appropriate strategy and stick to it and likewise for a range bound market.
It's right. Trading in various timeframes one indicator is impossible, probably by mistake. The best option - it does not get hung up and take all possible on the market. Or take for themselves a single solution for trade, which stick
  • #15
  • Feb 22, 2016 9:07am Feb 22, 2016 9:07am
Quoting DenForex
Hello, dear visitors. I have often faced such a problem, when the trading strategy, which held a few months suddenly ceases to generate income. I started to look for new solutions and it takes time and money. What do you think, whether in this case, to look for other options, or just stands to be patient?
Trading strategy isn't formed one day.
I think you shouldn't change trading strategy often.
On the market affects many factors including Fundamental. Such changes won't stand no strategy. Keep this in mind.
  • #16
  • Feb 23, 2016 9:17am Feb 23, 2016 9:17am
Quoting SantaNunez
{quote} Trading strategy isn't formed one day. I think you shouldn't change trading strategy often. On the market affects many factors including Fundamental. Such changes won't stand no strategy. Keep this in mind.
Ok. This is realy right. I know how to assess the market in terms of shapes (patterns) and wave theory, therefore, the periodic coincidence in the movement of the price - it is quite natural fact. So, really, the strategy can remain profitable.
  • #17
  • Mar 14, 2016 8:30am Mar 14, 2016 8:30am
Strategy works after a long practice on it if it is not successful after some time one has to change it totally or made changes in it where required. One can think better why his strategy is not working now . As market works he has to work according to it.
  • #18
  • Mar 15, 2016 2:32am Mar 15, 2016 2:32am
It depends, if your trading strategy not work or always lost, you should adjust your trading strategy, such as if you are not suitable for long term trading, you can change to sclaping.
  • #19
  • Mar 15, 2016 2:40am Mar 15, 2016 2:40am
Quoting DenForex
Hello, dear visitors. I have often faced such a problem, when the trading strategy, which held a few months suddenly ceases to generate income. I started to look for new solutions and it takes time and money. What do you think, whether in this case, to look for other options, or just stands to be patient?
It is impossible for a trading strategy which works well and generates income to suddenly stop working, because as long as I've been trading the markets have never changed - human behavior, which is what drives the markets, does not change overnight. They do go through periods of increased or decreased volatility, but apart from that, they are consistent in that a winning strategy should remain a winning strategy. What can change however is you, the trader. If you are suddenly losing whereas before you were winning, if that is indeed what you were doing, consistently, then you need to examine your own behaviour, not the market's.
  • #20
  • Mar 15, 2016 4:55am Mar 15, 2016 4:55am
Quoting cat
{quote} It is impossible for a trading strategy which works well and generates income to suddenly stop working
That is patently false. You just haven't traded long enough.

Quote
If you are suddenly losing whereas before you were winning, if that is indeed what you were doing, consistently, then you need to examine your own behaviour, not the market's.

Markets do change behaviour, and a key trading skill is the ability to develop and adjust a strategy to fit with the changing markets. That is why it is less than helpful to buy a strategy, pick one up online, or to follow a mentor/guru.
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