effective strategies

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What do you mean?

You have to keep a risk reward ratio that averages a positive return. Just that.

There are two lies: The RRR must be higher than 1:1 and that you have to risk about 2%

Risking about 0.25 to 0.5% maximum will make you consistent.

Aiming low RRRs will secure a lot of $$$ for you. It does not mean closing at low RRRs either.

Another fallacy is that diversification reduces risk. Or that long-term is safest than shorter term. That is not true per se.
 
The ultimate strategy is backtesting your technique a few thousand of times to get a realistic perspective. That beats any theory.
 
gon said:
The ultimate strategy is backtesting your technique a few thousand of times to get a realistic perspective. That beats any theory.
Click to expand...
The ultimate strategy, where the real action happens in the back alley of backtesting! It's like putting your technique through a few thousand rounds of intellectual sparring—because in the battle of theory versus reality.
 
jakabasej4 said:
The ultimate strategy, where the real action happens in the back alley of backtesting! It's like putting your technique through a few thousand rounds of intellectual sparring—because in the battle of theory versus reality.
Click to expand...

That statement does not have a cohesive meaning. I do not get what you want to communicate.

In any case, you need a density function or a frequentist probability analysis to validate your strategy. If you haven't done it, you do not have a strategy, you are gambling.
 
gon said:
The ultimate strategy is backtesting your technique a few thousand of times to get a realistic perspective. That beats any theory.
Click to expand...
Use Trend Spider or Trader Edge for back testing and get 100s of tests in a few mins instead of days of work. Good way to test new ideas or see if a strategy that once worked still holds up..
 
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BASE5NYC said:
Use Trend Spider or Trader Edge for back testing and get 100s of tests in a few mins instead of days of work. Good way to test new ideas or see if a strategy that once worked still holds up..
Click to expand...

I understand that is for automated trading, isn't it?

For discretionary trading, we need tools that accept input from the user. I use soft4fx a lot, a cheap tool that is integrated on Metatrader and uses real financial tick data to generate any other timeframe.

Cheers.
 
Consider employing a conservative risk-reward ratio, potentially lower than the often suggested 1:1, and limit your risk per trade to a small percentage of your capital.
Understand that diversification and trading term preferences should align with your individual trading style and the specific market conditions you're dealing with.
Heavily focus on backtesting your strategies to ensure they are robust and can withstand various market scenarios.
 
A small addition to all above points, going aggressive when markets are in my favour and holding my horses when markets are not in favor has added an extra element to the RR and risk per trade methods to the risk management
 
abhi_kuch said:
A small addition to all above points, going aggressive when markets are in my favour and holding my horses when markets are not in favor has added an extra element to the RR and risk per trade methods to the risk management
Click to expand...
new layer to handling risk, doesn't it?
 
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