Know When NOT to Trade Your Strategy! http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Identifying Good and Bad Market Conditions to Trade. Should Market Conditions Affect The Way You Trade?
We have talked about this before. You can have the best strategy in the world but if the market conditions aren't right you won't be able to make money.
Trend - Steady Moves - Let's say you are a money manager; you will buy a company because you think the company will succeed or the economy as a whole may continue to improve or they might buy a currency pair...etc. They are looking for longer term trading cycles so they need a nice steady plod in one direction or another. They will perform very well in such conditions and suffer in other conditions.
Mean Reversion - Range Bound markets - that could be over an extended period - if it goes to highs, back to low, back to highs..etc If your're trading mean reversion and you're buying and selling extremes you can perform very well.
Selling premium - Uncertainty - you are basically selling insurance with options for a premium. You can't make money generally unless there is uncertainty - the more uncertainty in the markets the bigger the premium you can charge.
Scalping - Volatile - this could be daytrading for a few minutes or hours and here you need market volatility and short-term waves to ride.
How to Know if a Strategy is Truly Profitable?
Back Testing Strategies - is it all Flawed? Are BackTests Useless? 🤔
Warning About Hypothetical Trading Systems ⚠️
Has Your Trading Strategy Stopped Working? When to Stop Using Your System? 🌚
Use the Right Trading Strategy in the Right Market Conditions! 🙂
Adapting the Market You're Trading to the Strategy You're Using 👍
Know When NOT to Trade Your Strategy! Good and Bad Market Conditions to Trade 👊
How Current Market Conditions Can Make or Break Your Trading Thesis ✊
Creating a System for Bull, Bear and Sideways Markets! 🙂🙃