Talking Points:
• Market conditions change from day-to-day, season-to-season and systemically
• No strategy is robust enough that it can continue to outperform indefinitely without adjustment
• Reviewing our trading strategy regularly helps to identify where we can improve
What kind of Trading best suits you? Technical or Fundamental? Short-term or Long-term? Take our Trader Survey and find out.
A market is imperfect, volatile and ultimately indifferent to our participation. As traders, we should regularly review our strategy to evaluate whether our approach fits the unwieldy system or whether we are fighting the current. There are a few areas in which trading usually runs awry: over/under-trading; risk management adjustments; mismatching strategy to conditions; and adapting the 'edge'. More often, the focus is turned to the actual signals that we use to call our trades (the 'edge'). However, the other elements are just as - if not moreso - important. We discuss reviewing market approach and where I'm looking to adapt my strategy in this weekend Strategy Video.
Sign up for John’s email distribution list, here.
