TRADING STRATEGIES
1- What is your term? Short? Middle? Long?
If your term does not match the shares here, you may have problems. When I look at the tests, the strategy goals usually vary between 2% and 5%. It may not produce healthy results for the long term.
I did not give 2-stop levels and trailing stops. Everyone should determine a stop according to their risk appetite, and the trailing stops are related to the satisfaction level of the person. (I would like to point out that stop and trailing stops should be determined according to market volatility, this is the healthiest system for me)
3- Since indicators created according to statistical data are used in technical analysis in these strategies, basic data and macro variables are called eyes. For example, it is worth mentioning that attention should be paid in periods of increased volatility in the market, such as the FED interest rate hike, non-agricultural employment data, etc.
4-Not all strategies can pay off at the same level. Good has good. His search for the best never ends either. Rather than searching for the Holy Grail and trying to find the perfect strategy, I think it would be healthier to consistently aim to grow your portfolio.
5- Since I am a fan of selling and closing positions with trailing stops rather than signals from indicators, I did not create any sell conditions. But I will explain the weaknesses when sharing the systems.
6-I do not trust system testers. Since I think it is completely based on trading, approaches such as if you followed this rule since 1992, there would be such a return, etc. seems far from my mind. Maybe I am thinking wrong, but I do not believe in its applicability. I have a shape in my brain such as short-term trading, moving positions between 1 and 10 days, examining swap data before entering a position, and determining profit targets in advance. Therefore, my perspective on indicators, purchasing strategy, etc. are also affected by this structure. If it does not suit you, it is healthier not to apply it.
7-I do not buy shallow, low liquidity stocks. Sharp rises can be seen in a short time as well as sharp declines. If the aim is to fish, it is useful to hunt where there is a possibility of fish. I think the thought that this fish can be everywhere in this sea is wrong. Money is not easy to earn. Why would you trade shallow stocks?
8-When evaluating the strategies, it is necessary to look at whether it has earned more stable than it has earned. It is worth noting that the real winning strategy is risk management. It is not the right approach to abandon the strategy after it sells at the stop a few times. For example, if you set 1 unit stop 3 unit profit target. If you stop 7 out of 10 trades you make, you will lose 7 units. You set a goal of 3 units. For the remaining 3 trades, you will earn 9 units. In total, 2 units are still in the snow. What are your chances of winning or losing, whether you buy it anywhere. If your profit target is 3%, selling at a loss is 1%. Or, if your profit target is 15 levels, applying a risk management such as a 5-level decrease to your loss will bring you closer to the possibility of winning.
AUTHOR:
Ali Erkan TANACIOĞLU
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