09-13-2013, 05:50 AM
Hey Johnny63 . . .
I usually trade with the immediate trend after a suitable pull-back (retracement). What's suitable? It depends on nearby support and resistance. Sometimes I'll take a counter-trend trade if the market has gone too far (IMO) one way or the other without a good pull-back.
Yes, most things that come from backtesting fail -- unless you adapt the strategy/method to the ever-evolving markets. For example, I day trade Crude Oil (CL) and the price action in that market is much different today than just a couple of weeks ago. Trying to trade today like I did mid-August would get my account killed. So you have to "tweak" even successful systems frequently.
I agree that options (and binary options) limit your potential loss but any trader should be able to do that himself/herself with a stop loss. When I teach folks that's the first thing I make them place after entry . . . even before their profit target(s). You've identified the problems with binary options but the biggest I would think would be getting your money from the "broker" since it's really coming out of their pockets if you were profitable because they're taking the other side of most trades.
Good Luck!
EuroTrader
I usually trade with the immediate trend after a suitable pull-back (retracement). What's suitable? It depends on nearby support and resistance. Sometimes I'll take a counter-trend trade if the market has gone too far (IMO) one way or the other without a good pull-back.
Yes, most things that come from backtesting fail -- unless you adapt the strategy/method to the ever-evolving markets. For example, I day trade Crude Oil (CL) and the price action in that market is much different today than just a couple of weeks ago. Trying to trade today like I did mid-August would get my account killed. So you have to "tweak" even successful systems frequently.
I agree that options (and binary options) limit your potential loss but any trader should be able to do that himself/herself with a stop loss. When I teach folks that's the first thing I make them place after entry . . . even before their profit target(s). You've identified the problems with binary options but the biggest I would think would be getting your money from the "broker" since it's really coming out of their pockets if you were profitable because they're taking the other side of most trades.
Good Luck!
EuroTrader
(07-30-2013 07:37 AM)jbrown63 Wrote: [ -> ]@EuroTrader
You are certainly right with both, the failure rate and the robots.
Futures are very similar to Forex, it's the same instrument used here (with high possible leverage).
I played a bit with forex but puled the line after a few small losses.
I left with only $20 in losses, so I did not get any gambling thrill out of it.
What kind of strategies do you use?
I know everything that comes from backtesting tends to fail after a while.
I'm with Nassim Taleb - meaning chance plays a big role in the markets.
The options guys now sell their indicators and automation systems for MT4... from what I see they only sell the indicators.
To me, options seem a fair start. They are kind of Forex with a stop loss system. unlimited possible gains against a small and defined loss.
However, it's not a natural trading style, especially if one prefers options out of the money. It hurts to lose often...
Just had a look a binary options:
This is kind of gambling. You try to forecast a price after a fixed amount of time.
You also trade in the noise... so it's all chance.
The options part:
If you're right, you can make huge gains. If not, you loose a fixed amount.
If the leverage is good, this could be a nice money machine.
But there are some concerns:
a) the trading company earns from your trades
b) they are also your underwrter (option seller)
c) they provide the ticker too!
Summary: they provide the platform and data - and they trade against you!
Cheers, Johnny63