Most profitable trading strategy? (In your opinion)

A

Alex

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In your opinion what is the most profitable trading strategy?
 
J007RMC

J007RMC

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no Holy grail I posted it earlier today give it a read
 
murkr

murkr

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I feel like I've tried 20 indicators (not at once) and even with backtesting and strict entry requirements, my trades are 50/50.
I feel mesmerized by indicators that look like they predict the market perfectly, but when I try to use them it doesn't work out that well. Even being strict, using various indicators to help with entry/exits.

Every time I looked at some professional's charts from a picture taken from a trading desk they always have very little indicators. It looks like some sort of EMA/SMA cross, VWAP, volume, multiple time frames from a single stock, and the news bar.

So if these people doing 100K+ a month are using so little then what is their edge?

There must be so many different edges out there. If you are a successful trader, can you share your edge?
example: I scalp /ES on the 3m when RSI is below 30 and see a bump in volume. or I trade options verticle spreads with a %70 delta.

I just cant find my edge and its frustrating. I've been at this for over a year.. every day... I tried Futures now im trying to learn options.
 
BenTen

BenTen

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@murkr Nothing will be able to predict the market perfectly. Keep that in mind :)

I always recommend people to start drawing trendlines, support, and resistance. I think it's a good starting place to get a feel of the chart, know your price levels, and understanding where price may likely to bounce or reverse from. For S/R, you must know how to draw them yourself, here is an excellent introduction post. There are various videos on YouTube regarding this subject as well.

VWAP is a great indicator; it's non-lagging and gives you an overall trend pretty well. It can also be used for counter-trend trading.
 
murkr

murkr

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@BenTen Thanks, I already know a lot about charting S/R and different patterns like h&s, falling wedge, pennants, triangles.

Now I'm trying to learn about volume because I've always seemed to neglect that and turn it off on my charts. When I search "volume" in Thinkorswim there are so many volume indicators, I also see some are created here. Do you have a favorite volume indicator?
 
BenTen

BenTen

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@murkr Like you, I have not been able to take advantage of volume for my day trading. However, I recently picked up RVOL (Relative Volume), you can check it out here.
 
C

codydog

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@murkr -- Trading/investing goes through cycles of whats popular and whats not. Many value/active investors have been blown out as the trend from active to passive has increased dramatically. So, many of those indicators may have worked but are worthless now, imo. I see many folks endlessly fine tuning 10,20,30 year old indicators and am absolutely lost why they do it. I'll just list some bullet points to make this easier to read-

1. You may want to read Virtu's ipo and other docs to see what they do. One of the important observations is that break even trades are as important as win/loss.
2. When you see a "professionals" chart, be aware that real pros wont let you near their screen due to NDAs. There are many "pros", my guess is they make a living from selling tools not trading. I'd also add consider changing colors on indicators as alot of apps use similar colors as casinos which affect your decisions. Many highly paid 'pros' eg, market makers, are executing customer orders and take very little exposure to the mkt.

2.a. If a "pro" shows a screen and says they make x, ask for their audited 1040s, I've never seen a guru respond to that.
2.b. Theres an academic paper posted here, somewhere, which describes the vaious MAs and rates the, worth a read even if you disagree.
3. Volume/money flow can be misleading as you simply dont know whats on the other side of the trade
4. Consider looking at the latest fad, and the mechanics of it, eg, gamma/vanna , its a big deal (for now)

And, never forget, as well-intentioned as some are, its your money, your decisions. I could be the biggest clown in the trading world, you simply dont know and should be a skeptic.
 

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