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I have a question how you approach your strategies.
For example do you use a trend following strategy and at the same time a counter-trend strategy to make sure you can make money in all market types?
Or do you apply them together (filter a trend following strategy with oversold/overbought indicators)?
I guess in the end a portfolio of strategies would be most ideal, but as a first step would you go for a one strategy fitting everything or separating them both?
Thanks!
Can you help answer these questions from other members on NexusFi?
Hola Desde España yo personalmente uso solo un sistema de seguimiento de tendencias. Si no hay tendencia no opero
Pero claro no todas las semanas habra tendencias lo que hago para contrarestar eso y tener oportunidades todas las semanas es vigilar en vez de solo el es tambien vigilo otros futuros como el nq, cl, gc y elijo antes de cada dia cual esta mas favorable a tener oportunidades.
Un saludo: piloto_loco:
1) A balanced strategy buying and selling in both bull and bear markets (and of course during the "soup").
2) A strategy should hold its own - or not trade- based on the size and speed of the bars.
So, it may take a few types of strategies running together to hit slow and fast markets. But we cannot predetermine size and speed of future bars, so again, the strategy should have a filter to minimize trading during unfavorable conditions.
This is my ultimate goal: a portfolio of unique strategies that are uncorrelated to one another in terms of drawdown.
What I have currently is a daily allocation mean-reversion model that trades US Treasuries, Gold, and US Equity Indexes. This model experiences it's largest drawdowns when the Equity Indexes close down multiple consecutive days as would be expected from a mean-reversion model. This model is 100% systematic - zero discretion. I trade this model with my entire account currently.
What I'm working on is a discretionary momentum swing trading strategy for stocks. This strategy does well at avoiding devastating drawdowns/bear markets because there are simply very few valid setups during a bear market. In theory trading this strategy in conjunction with my existing allocation model should increase net returns during strong bull markets without increasing drawdown during bear markets. I've been having preliminary success with this approach and have begun to increase my size. Currently utilizing about 10% of my capital at maximum to this approach with the intent of eventually trading my entire account once my results warrants the increase in size. The allocation model can be traded with futures which are very capitally efficient due to leverage. This would allow me to trade both strategies simultaneously with a net exposure equal to 200% of my account size without paying much in the way of margin interest.
I've always worked on my daytrading but have yet to find any consistency in intraday trading. I hope that someday the third strategy in my portfolio will be an intraday one.
That sounds like great progress you are making!
I still need a long way for that, especially i like your gradually move towards the strategy the more you see it works.
As you said before, a portfolio of unique uncorrelated strategies is the ultimate goal
Intraday market often moves in and out of trending or range. Longer time frames (holding overnight) it is not so clear. Pretty easy to switch strategy with day trading, not so much when you can not see your screen.
