Did you know that for quantitative trading, the strategies you are using always have their own time limits and market biases? Until you are certain that your market judgments and response time are perfectly suitable for profitability. The internet is full of such tools and strategies, but to be profitable, you must be smarter than others, and you’re never surpassed by others.
Most people dream of making a fortune in the crypto world, especially when BTC is in bull mode. Consider themselves smart enough, and when the BTC collapses for consolidation, they exit immediately in order to reduce losses.
Single/Multiple indicators
There are many famous trading indicators like MACD, RSI, and moving averages. For the time being, these indicators are good to give an idea of when to enter and exit. But in reality, these indicators are not enough. Because many times, fees and slippage impact your profitability. Often, people use these indicators and overfit them and achieve wrong results. It doesn’t mean that these indicators are wrong. But if it is used in conjunction with others. No single indicator’s is 100% reliable until you are mixed with other indicators to learn about the direction.
But wait, what is the guarantee of using multiple indicators to find the position and earn a good return? Yes, you are absolutely correct. There is no guarantee; even if you have used multiple periods, the chances of losing money are still great. According to expert traders, the winning rate of the most popular indicators is less than 50%.
Winning rate
In which market you are operating, the market always moves in waves. How much you have made in market volatility, you have to pay back in another wave. If I have earned $1000 and lost $900, what is my ratio of earnings, and is it enough for my monthly expenditure?
The real strategy
The strategies you are using are fundamentally important for success in trading. Whether you are watching your MCAD and RSI 24 hours a day. Strategies like swing and Martingale are essential for continuous profitability. But it doesn’t mean you are always profitable; sometimes the market faces extreme conditions. If you have put your funds in these strategies and never looked back, it could be possible your funds have wiped out.
I got the answer
No, the problem is still not completely solved. If you are not able to make money in a trend, is your judgment correct or not? Indeed, when the trend comes out, you are able to identify it.
Finally, you will need multiple strategies to handle market trends, bulls, and bears. Always be prepared for every type of market condition. Use multiple indicators, and do not over-rely on trading gurus.
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