5 Tips When Switching Up Your Trading Strategies

[monagano]

Thank you for the tips, a lot of it is true. the only challenge is that you only get the realize the 'truth' through experience.

 

[Bangkok]

Thank you for your insightful post. Excellent trading advice, very helpful.

 

[Macromania]

All the points are very important to consider when switching between the trading strategies. It is essential to try different strategies in order to know what suits us the best.

 

[DukeBarrel]

Self-learning is widely popular among the traders of today. Learn, practice on a demo account, and then trade on a live account until you are confident enough to trade.

 

[Wallflower]

When changing over to a new strategy it's best to run it in a demo account for at least 3 months. Running it in the demo account on different time frames and various market environments will give you upper hand over backtesting.

 

[wizard8]

This is really helpfull info.
This is why its good to have others with some more exp

 

[Jackyard]

Well written post. Every trader should backtest their strategies until they start yielding consistent profits. Rushing will only be harmful for you.

 

[Charles Agustin]

Traders have interest in live trading directly but they mostly lack interest in learning. So, there is no alternative to using demo account for learning. And it is the only reason why majority of the traders fail to win Forex. Eurotrader provides traders with different types of accounts with reliability. They allow traders with a 111% deposit bonus.

 

[BoldMaestro]

Changing a trading strategy is not that easy sometimes. Therefore, a trader must backtest and forward-test their trading strategy enough times to make it work. A demo account is quite useful in that case as it helps a trader experiment with their new strategy without losing any of it all.

 

[Epimyth]

Quite an insightful post! Having a flexible and adaptable way is the best way to trade the constantly changing market. However, backtesting the strategy in different time-frames and various market conditions on a demo account is important.

 

[Clapboard]

It is crucial to know that not every strategy will work forever. The market is constantly changing, so one needs to accept that fact and be flexible to change one’s strategy if it stops working. Of course, backtesting and forward-testing is crucial.

 

[Hootenany]

One should never rush to change one’s strategy without backtesting and forward testing it. Rushing to change one’s strategy leads to failure and nothing else.

 

[Carnose]

While it is crucial to adapt to the market when it is necessary, continuously changing strategies won’t work. There should be no rushing without researching well first.

 

[BinarySumo]

Personally, I think it is not a good idea to switch trading strategies too frequently because it can lead to inconsistency and a lack of discipline. However, there may be times when it is appropriate to adjust your strategy, such as when market conditions change or your goals evolve. When considering a change in such scenarios, it is important to carefully assess the potential risks and benefits and then make a call accordingly.

 

[TraderChileno]

Thank you very much for those extremely helpful tips, man. It is worthwhile to read and put into action

 

[TraderChileno]

having trouble installing a EA can anyone help me please

 

[V3rona]

Useful tips will try to remember this before trading

 

[coachdray]

Thanks for sharing this information. I will definitely pass this on to my colleagues in the space.

 

[apple]

thank you so much for the tips mate, keep it up your contribution guide.

i like this idea. very good support and fast service. and fundednext mff good man

 

[Deerk]

Traders usually spend tons of time tinkering with indicators, parameters, and trading rules without giving much thought to how long they might work.

Take a basketball game, for example.

Team Blue has prepared to go against Team Red by breaking down the individual players’ stats and analyzing their usual plays. They’ve made allowances for errors but they also generally expect the odds to tip in their favor.

Winning against Team Red means identifying which plays they’re executing and making adjustments for it. Not at the end of the quarter, but as soon as possible.

Likewise, the best way to keep Team Red on its toes is to switch up the players and strategies as soon as Team Red has caught on to Team Blue’s plays.

Forex trading has the same principle. If you want to be consistently profitable, then you’ll have to be profitable across different trading conditions.
So, how can you be profitable in any trading environment? Here are a couple of tips.
1. Spend as much time as you can studying price action.
Nothing beats experience. While backtesting will go a long way at pointing out strengthening and weakening market and indicator correlations, your experience will also be useful in identifying the earliest signs of change in trading conditions.

Are bulls taking back enough control to end a trend? Or has a market catalyst inspired a breakout from tight ranging conditions? Has a moving average crossover finally failed to herald a change in trend?

Don’t hesitate to use a trading journal to help you remember your observations.

2. Try both discretionary and mechanical trading
While mechanical trading works for a lot of traders, the systems also only work as long as you’re using the right tools in the right environment.
This is where discretionary trading comes in. Remember that your profitability hinges on how fast you can adapt to changes in trading conditions.
But since a lot of systems tend to use lagging indicators, you’ll need your experience and discretion to identify and take advantage of market changes.

3. Experiment with different trading strategies
Once you’ve confirmed a change in trading environment, it’s important that you quickly change gears and adapt to it. This means you’ll always have to be ready with more than one “play” in your playbook.

Backtesting different time frames, indicators, and trading conditions will help you expand your playbook.

More importantly, (successful) results from previous backtests will increase your confidence about jumping to another strategy and prevent a myriad of trading psychology-related trading mistakes.

4. Be flexible
Just because a strategy has yielded you pips for days doesn’t mean that it will do so for the next couple of weeks.

Be ready to switch your strategies as soon as your parameters call for it.

5. Practice good risk management
Just as basketball players don’t shout their intended plays to the opposing team, you also won’t know WHEN market conditions will change.
But if you practice good risk management habits – in each and every trade – then you can afford to be stuck with an open position that used an old strategy while trading conditions are changing.
Just make sure that you use the appropriate strategies in your next trades!

Remember that forex trading is an ever-changing jungle that can’t be successfully navigated through with a single set of tools.

If you want to be consistently profitable, then you can’t expect a single set of rules to ALWAYS work in your favor. Be ready with different strategies and be flexible in using them.

Great advice