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I find it hard to believe that the strategy described could work at all, but would have to look at the code. The last few years in ETFs, a short term combination - 3 and 7 day rate of change are both positive worked pretty well, but nothing really Nobel prize worthy. That is quite unusual for those to do that well - both numbers negative usually play better than that.
My guess is that people on here tend to get hung up on day trading, that is a very dubious way of getting wealth at least from an equity trading point of view.
Can you help answer these questions from other members on NexusFi?
Try stepping back to a bigger view of the price structure and develope set ups at these higher time frames which are less noisy.
You might also contact David Dube at his Polarous Trading Group, with respect to using options to capture the swings within the Taylor Trading methodology that he uses.
David did a webinar her a few days ago. You can check out what this methodology is all about. David is a straight shooter.
I was in pretty much the same boat as you for the same time period, buying options and having great success. My "strategy" was pretty much just pattern analysis and stock picking.
From early 2016 to Jan 2018 we had historically LOW volatility, which made options very cheap and it was easy to hold something while it trended and on any pullbacks (which were shallow) just buy more/again. End of Jan '18 volatility returned with a bang and ever since, we get steady trends up for a few months and then BAM, volatility jumps again and wipes out all of your gains and then some. You might try buying dips and dig yourself even deeper in the hole, and by the time it starts bottoming you're too nervous to be buying anymore.
I went back to the drawing board, saw that my "strategy" was simply a coincidence of market conditions. You will have to do the same.
Sorry to be harsh , but trading is probably not for you. I have been smashed from pillar to post in this game , but describing it as “absolute devastating “ seems like your skin is not thick enough for this harsh business.
The story of life, I have had four blowups of my account, the 3 am call is upsetting for the wife:faint
Maybe your life purpose is to feed the liquidity of the market. Some people come to the river with a spoon and some with a bucket. Try the spoon with the new micro mini futures, extremely low margin and designed for Etf competition. Can swing trade it, as to technicals there is no answer.
Oliver if I had to pick one piece of advice from all that's been given as the best explanation of why your systems quit working its for the same reason that even hedge funds managers and algo writers, much more retail traders, are broadly disappointed in their systems at times of major changes in money supply, e.g. y2k, iran war, QE and current pumping of money supply -- it breaks algos because as money supply changes, the same % of change in price becomes a larger absolute value, which breaks systems that are accustomed to different absolutes.
I'm pretty new and don't know much. I agree taking a several week (or more) break to step back and re-assess should be step one. A lot of the folks on this site are huge fans of order flow trading (w/Jigsaw or similar) which is my next challenge to learn. Best wishes.