signs of over trading

[OscarR]

How do you distinguish between active trading and overtrading, especially in a fast-paced market like Forex?

 

[Ethan.ishere]

Just impatience and having no clear resolution on your past trades and constantly going out of your way and neglecting your strategy impulsively.

 

[LJ_Kon]

How do you distinguish between active trading and overtrading, especially in a fast-paced market like Forex?

Active trading is like being a chess player with a strategy, while overtrading is like rolling dice and hoping for the best.

 

[abhi_kuch]

If you have clarity in what you are doing, and the thought process behind a trade that you take, I would generally categorise it as Active trading.
Once that ventures into not having clarity and reasons for trade and other that what your system says, then its overtrading for me

 

[LJ_Kon]

How do you then adjust your strategies in real-time to avoid overtrading, especially under the pressure of a fast-moving market?

 

[abhi_kuch]

How do you then adjust your strategies in real-time to avoid overtrading, especially under the pressure of a fast-moving market?

reduce risk per strategy, when it starts going into a unfavorable regime + adding regime filters to help the strategy would also assist in reducing over-trading

 

[LJ_Kon]

reduce risk per strategy, when it starts going into a unfavorable regime + adding regime filters to help the strategy would also assist in reducing over-trading

how do you determine which regime filter to apply, and can you share an example of a specific filter you've found effective in certain market conditions?

 

[abhi_kuch]

Which regime filter to apply is a series of tests on historical data starting with, the filter should help you choose a favorable area to work with.
I mostly trade momentum in stocks and crypto, a combination of 10 and 20 sma/ema on various timeframes have proved really effective for me. Might not work for other kind of strategies.
VIX is also something I use to define regimes, while buying options. This has reduced my overall trades significantly and performance is not hampered. Which is the beauty of a regime filter.

 

[LJ_Kon]

Which regime filter to apply is a series of tests on historical data starting with, the filter should help you choose a favorable area to work with.
I mostly trade momentum in stocks and crypto, a combination of 10 and 20 sma/ema on various timeframes have proved really effective for me. Might not work for other kind of strategies.
VIX is also something I use to define regimes, while buying options. This has reduced my overall trades significantly and performance is not hampered. Which is the beauty of a regime filter.

Thank you for the explanations!