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Has Your Trading Strategy Stopped Working? When to Stop Using Your System? 🌚 Video

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How do you know when your strategy isn't working anymore? http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE!When to stop using it? You strategy might be working very well but the market conditions could change. The big question you have is when to stop trading your system?

Knowing when your trading strategy isn't working anymore. We have already discussed about developing a trading strategy that fits into the market conditions so if you're trading a trend trading strategy, you want to trade a trending market - if you're trading mean-reversion you want to be in a range-bound market...etc Market conditions change and a trading strategy that was working great in certain market conditions may stop working when market conditions change. The big question you have is when to stop trading your system? Is it simply the case of a normal drawdown or is the strategy not working anymore? One simple crude but effective way is to use a moving average on your equity curve; when the equity curve of your account goes below your moving average you know that your strategy has started to fail. Just keep in mind that the shorter the moving average, the more closely it will follow the price...

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