I would like to answer this question.
Honestly, I feel this is not the right question in the first place.
As far as my knowledge goes, there are thousands of trading strategies that work in the market. A simple google search will throw up back tested ones with good profitability in any time frame of your choice. ( I speak purely for technical analysis here )
The moot question here is can you share an overview of how you trade your trade strategy ?
Having a trading strategy constitutes just 1 % of being a successful trader. Trading it as it is meant to be constitutes the other 99 %.
This is where the real challenge lies. This is what separates the winners from the almost winners ( Dont we all, almost always, delude ourselves we are here )
if you were to ask me the first thing you must do right now i would say, STOP LOOKING FOR THE NEXT TRADING STRATEGY !!!
If youre a newbie, read ONLY ONE book on technical analysis( google and find any author who shows up on the first page or has the best amazon reviews )
Choose any ONE indicator that you feel you may want to work with. Dont stress too much on which one. Remember that there are just 3 real indicators in the market : price, volume and open interest.
Everything else is a derivative of these anyway.
Now here is where your personal interests will come into play.
If you are like me, you will choose the following path.
The book that you have read will have a lot of strategies defined in it anyway.
Trust me when i tell you they all work and you need to just choose to implement them the way the book asks you to do it. Period.
If you are the researching kinds who needs to feel the power and propriety over his strategy, then you will have to follow the long drawn out process of backtesting and trial and error to develop it.
I have done this too successfully and honestly its not for the faint ( and cash light ) hearted ( the reason i say this is because in hindsight, you do not need it !!!!! I wish someone had told me this earlier that i am here to make money and not make strategies and feel like Xerxes in the movie 300 with men holding me on a throne )
Next we come to the implementation stage.
Here is a practical suggestion I feel should work since it has worked for me. Im certain it work for you because my IQ is just a little more than that of a dung beetle :
1. Choose a timeframe based on your trading style ( intraday, swing, positional whatever it may be, choose the appropriate time frame in which you would take your decisions currently )
For eg, Swing traders may want to choose a 30 / 60 min timeframe for strategy and a lower timeframe ( maybe 5 /15 for Entry ). This is just a ballpark i have given as per my own limited trading experience.
2. Choose just ONE out of all those strategies in the book that you feel are the most comfortable with.
Not TWO. Just ONE.
3. Now trade this strategy like it is the truth handed to you by God himself. BUT HERE IS THE REAL CATCH :
God will tell you my strategy works. Keep doing it faithfully and you will make money eventually on a net basis.
But maybe, just maybe, this time it wont work. Can you accept that ???
If you can accept this and still soldier on, Congratulations !!, You are on the path of becoming a part of that 1 % which is going to remorselessly suck in the money of the remaining 99 %
If you cannot, then you know which side of the equation you will eventually belong to. Dont believe the fact that you made a profit today, or yesterday, or this whole week or month without a working plan. If your goal here is to make monster money consistently ( which is what it should be ), then unless you have followed a strategy which you implement over and over and over again, you will eventually give back everything you have earned.
If you ask me to predict one thing about the market that will be true 100 % of the times, then it is the above statement.
And thats it.... !!!
Funny as it may sound, thats all there is to it.
Ya, and one more thing. When you try and implement this, you will doubt it each and every second.
You will want to do everything to violate every rule you set for yourself and what the strategy says.
But hey, unless youre an atheist, God gave this to you right. So follow the damn thing :)
As George Carlin famously said - " Tell people there's an invisible man in the sky who created the universe and the vast majority will believe you.Tell them the paint is wet, and they have to touch it to be sure "
So stop doubting this strategy you chose for yourself and just implement it to the hilt NO MATTER WHAT AND HOW YOU FEEL.
Do this for about 25 trades and check your P&L at the end of it. Till then DO NOT, I repeat, DO NOT check your P&L.
Let this also be a training. Set aside money that you may lose to gain this mindset. you will definitely falter. what will determine your success eventually will be the degree to which you follow or falter.
Acquiring that mindset to follow a strategy is a transformational process. Dont go too hard on yourself if you succumb initially. And i dont say this because i want to give you some pop psychology decree. Its because it will 100% lengthen your process. so you make the choice now.
Remind yourself not to feel negative because its wrong. Yes, its wrong to feel negative about yourself. This is not you. This is just your competence. You are not a trader. You work as a trader. Its not your natural state and you dont seek it. you will feel it anyway but just ride it through till you feel neutral. These energies will eventually subside. You will see the same action and loss doesnt cause you that pain anymore.
Anyway. I hope this works. I have seen many friends around me crash and burn only because they havent taken the time out to see that the problem lies with their unpredictability and not that of the market. I hope you can realise this in time to build massive wealth for yourself and the life you want.
Since this article is about trading strategies, ill anyway just give you an overview of what is mine and trading rules i try and follow diligently.
1. Swing trader on Nifty Index.
2. General time frame of trade - 2 - 5 days
3. Indicator - Only price ( candles )
4. Accuracy - 35 % ( You dont want to try and be right. You want to try and make money )
5. Risk : Reward Average : 6 : 1
I am profitable since the last one year and have been trading full time for 2 years.
This data can be confirmed from Nithin.