collapse

Author Topic: How long to keep your strategy running before you decide is not working anymore  (Read 12511 times)

Offline fxman

  • Sr. Member
  • ****
  • Posts: 653
By observing the result of one profitable month it is not possible to judge a strategy . Imo at least 6 months needed to judge the performance if that strategy runs good at the beginning. If it performs the same way it did in backtest it is fine.  If u understand how that automated strategy is working then later if it starts to lose money, by running backtest on recent months u will also able to detect what is the problem and how much risky it is to run it further. So traders or investors should have good knowledge about the strategy they are using for trading or investing money.



Offline indicator

  • Sr. Member
  • ****
  • Posts: 696
If a strategy has worked in start and then become useless then it means that such strategy wasn't a good one to follow. It had only worked because of some market conditions or just by luck. A system for trading does not become useless at all in any market conditions, provided you are following all of its rules.

Offline resistance

  • Sr. Member
  • ****
  • Posts: 703
Quote from: indicator link=msg=341935 date=1435205614

If a strategy has worked in start and then become useless then it means that such strategy wasn't a good one to follow. It had only worked because of some market conditions or just by luck. A system for trading does not become useless at all in any market conditions, provided you are following all of its rules.


I think mostly strategies can't work for all the time but we need to update them as we need, so don't ever use same strategy without making evaluation on it because trader should keep on learning about the effectiveness of his strategy in every condition in the market because market's movement is dynamic so you need to fix the bad thing in your strategy and add good thing to make it better strategy but it doesn't change the main rule in the strategy itself.

Offline hybrid

  • Full Member
  • ***
  • Posts: 425
Some weeks one strategy should continue to see its effect . You can use it  on demo too when you are satisfied than use it on real account. If it is continuously giving loss to u change it according to market and your needs.

Offline indicator

  • Sr. Member
  • ****
  • Posts: 696
Quote from: hybrid link=msg=343176 date=1436703079

Some weeks one strategy should continue to see its effect . You can use it  on demo too when you are satisfied than use it on real account. If it is continuously giving loss to u change it according to market and your needs.


Yes why not start trading on demo account with it if you are getting bad results on your real account. Check it in a demo account for 2 months or so and then leave that strategy, start working on some other one.

Offline iMusingKiMi

  • Sr. Member
  • ****
  • Posts: 804
I believe a strategy usually could work for very long time if manually, especially we can keep improve it from time to time. Unless it is an EAs.

Offline indicator

  • Sr. Member
  • ****
  • Posts: 696
Quote from: iMusingKiMi link=msg=343222 date=1436771702

I believe a strategy usually could work for very long time if manually, especially we can keep improve it from time to time. Unless it is an EAs.


There are some strategies that don't even needs improvement. You can say that a trader can add or exclude some pairs that don't fit in that trading strategy but methodology of a strategy, it its working, will work for ever.

Offline resistance

  • Sr. Member
  • ****
  • Posts: 703
Quote from: indicator link=msg=344045 date=1438057998

Quote from: iMusingKiMi link=msg=343222 date=1436771702

I believe a strategy usually could work for very long time if manually, especially we can keep improve it from time to time. Unless it is an EAs.


There are some strategies that don't even needs improvement. You can say that a trader can add or exclude some pairs that don't fit in that trading strategy but methodology of a strategy, it its working, will work for ever.


I had a little bit different view with you. I think strategy will need improvement in timing and setting because the movement of pair won't be same from time to time, example : if you're using EUR/USD as choice for your main pairs then you will know that the movement of this price has been so volatile and more than 200 pips because condition country in Europe is not stable. So, it will need different way to handle it well.

Offline equityfx

  • Full Member
  • ***
  • Posts: 268
Quote from: resistance link=msg=344182 date=1438240891



I had a little bit different view with you. I think strategy will need improvement in timing and setting because the movement of pair won't be same from time to time, example : if you're using EUR/USD as choice for your main pairs then you will know that the movement of this price has been so volatile and more than 200 pips because condition country in Europe is not stable. So, it will need different way to handle it well.


You are right , many factor that make forex market being dynamically in chaging from time to time , moreover in EUR currency where there are many country that part of eurozone , so one country of that can impact such currency pairs

Online diyforexskills

  • Verified Vendor
  • Hero Member
  • ***
  • Posts: 1630
This sure is the really tricky issue when trading. My general rule for strategies I develop with FX Autotrader Elite is to back test for at least 3 years and only trade ones that have a maximum of 20% DD in that period.

This DD % then becomes my cutoff point going forward.


Information and product page - http://www.diyforexskills.com/forex-tools/




Offline hybrid

  • Full Member
  • ***
  • Posts: 425
I try one strategy more than 3 months , then decide I should change it or it would not work no longer ..I can not afford loss mostly so I have to see some  other way of trading where I can cut down loss and increase profit possibility

Offline vivid

  • Jr. Member
  • **
  • Posts: 52
When you account balance goes below 50% trading any method according to its perfection. I mean you had followed it properly with good money management and trading only when you see a good setup according to that strategy but still getting loss most of time.

Offline indicator

  • Sr. Member
  • ****
  • Posts: 696
Quote from: vivid link=msg=344427 date=1438610477

When you account balance goes below 50% trading any method according to its perfection. I mean you had followed it properly with good money management and trading only when you see a good setup according to that strategy but still getting loss most of time.


50% account equity loss will break your confidence but if we talk about any strategies performance, we should check it for some months, like 3 or 6 months. If the results are bad, we should change it.

Offline iMusingKiMi

  • Sr. Member
  • ****
  • Posts: 804
If you try to understand trying to trade using supply and demand instead of predicting market direction, it will never expired or not workig. ;D

Offline Rahim Miya

  • Jr. Member
  • **
  • Posts: 71
In my live trading account, I use my permanent trading strategy that I made in my practice account. Actually, I tested this trading strategy for three months thats way, I am very confident about my trading strategy. On the other hand, still I am practicing others strategies in my demo.
« Last Edit: August 06, 2015, 04:12:31 PM by DamBuster »

 

browse forum

* Recent Posts

Re: SFE Price Action EA by ccjhuang
[Today at 06:41:48 AM]


Re: Best Scalper by bestscalper
[Today at 01:14:19 AM]


Re: Swap Master - Market Neutral Arbitrage Trading by petersurrey
[Yesterday at 11:17:11 PM]


Re: economic news in MT5 by Caesar99
[Yesterday at 08:53:07 PM]


Re: economic news in MT5 by Hilapur
[Yesterday at 03:54:02 PM]


Re: Swap Master - Market Neutral Arbitrage Trading by petersurrey
[Yesterday at 10:42:11 AM]


Re: PZ Bollinger Band EA Set File by diyforexskills
[Yesterday at 04:48:47 AM]


Re: EA Controller by diyforexskills
[Yesterday at 01:14:39 AM]


Re: What Is Your Take On Forex Robots / Machines by fxopen78
[Yesterday at 12:15:58 AM]


Re: Swap Master - Market Neutral Arbitrage Trading by dutchie
[November 15, 2019, 08:59:29 PM]