Conservative strategy

Discussion in 'Futures' started by suri112000, Jul 26, 2016.

  1. alokdaga

    alokdaga Active Member

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    @humble can you please verify this..
     
  2. sunbim31

    sunbim31 Active Member

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    The thread is COLD
     
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  3. DSM

    DSM Well-Known Member

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    AFL's are designed to do well in trending markets. And most AFL's / indicators will provide the same signal - that can be deduced by the naked eye just by looking at the charts, (without using indicators....) The only benefit of using an AFL is that it removes the necessity of taking a thoughtful decision. This automatic process of entry however fails in non trending or volatile markets (due to spikes and reversals) The question that needs to be asked before going for an AFL based strategy is how often the market trends? Most traders would say it's between 20-30%, which means that 70-80% of the time publicly known plain vanilla AFL/indicators based strategies by themself will not work or will do so with bare minimal returns, that may not be worth the time... What will work however is additional filters, deeper understanding of the markets, better risk and money management etc... If simple AFL based trading could make money, retired people, housewives etc would empty out their bank FD's, office workers resign from their jobs and just sit in front of the monitor and make money month after month following AFL's... So public enthusiasm is always short lived, till another fancy AFL with with more bells and whistles is discovered.... And the cycle continues.... Just my views....


     
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