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Few quick thoughts on this topic,
1. I have never been consistently successful daytrading.
2. But, I learned over many years to be consistently successful
at position trading, once I learned my best entry points are
usually at the expense of daytraders who are forced out of
the market before the trend goes their way anyway.
3. For me, key to steadily increasing equity curve is to
trade multiple markets and multiple time frames. You only need
a 50% win/loss ratio if you can consistently exceed 2:1 win/loss
and book over 250 trades per year (i.e. only about 1 per day).
Then, the probabilities work in your favor, and you never get
a day that blows you up emotionally.
4. Indicators/systems: the simpler the better. If I shared
my best system with anyone else, it would get laughed out
of town - its so simple. But it works for me, and I didn't get
it out of a book.
5. I monitor this list, do a lot of reading, and test extensively using
several programs (TS4 is one), but at the end of the day I won't
take a trade unless I have seen the 'setup' before and feel
comfortable doing it. I have heard that a few traders have been
successful on 100% mechanical systems, but I don't think I
could ever do it that way - it wouldn't allow me to be creative
and adapt to markets as they evolve.
Can't remember who sent the original note on this topic, but
hope this is helpful for you.
Ken Low
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