Trading - Continuous Experimentation & Creativity
No such Thing As An “Arrival”
No matter how skilled a trader you are, there is always room for improvement and a shift into executions of excellence. Pride comes before a fall… and one sure place to test this theory is the marketplace. I have spent much of the last seven years working on strategies that mitigate risk, while subsequently keeping you in the game, even when the tide turns against you. This can often lead to much frustration.
When it comes to testing a strategy, multiple weeks and months are required. Essentially, a strategy needs to come up against multiple scenarios, as well as an array of market conditions, to receive any level of accreditation and validity. A successful strategy does not merely provide a favorable outcome on a handful of trades, but it can keep you in the game during unexpected turbulence.
What I am busy with at the moment is somewhat of an amalgamation, in that I am combining a few key strategic approaches that I have found to be highly effective, at least in my own trading experience. Much of this comes down to a strategic approach of fractional allocation with an arsenal of backup “positions” that can be deployed in a crisis, to adjust my entry point, ultimately ensuring that my position remains relevant, even after an adjustment of price action.
It can get rather tricky at times, as you have to mentally keep track of every “lot” that you have either deployed or have sitting in your arsenal. However, as with anything, do it long enough and it becomes second nature. The next two years are likely to be rather favorable for trading long positions. Essentially, that means that if you are not using leverage, you simply have to wait on a losing trade.
This dynamic is favorable, in terms of my strategy, as well as any other long strategies. This is only true, provided you are trading an asset that will keep in step with the broader Crypto market. If, however, you are trading something that blows up like Terra Luna, you can pretty much write off even the most brilliant strategy. There’s no salvation here unless you counter-trade your existing position with a short.
Multiple Points Of Execution
Outside of that, you are dead in the water, sorry to say. When it comes to many aspects of life, often the simplest approach is the best approach. I have however found this to be untrue regarding trading. Successful strategies are often a little complex and have multiple execution points. Buying low and selling high is not a strategy, it’s simply a fundamental component of an effective strategy. There’s an enormous difference.
Single execution strategies are often ineffective, for the simple reason that there can be no hedging or staggered levels of the capital deployment. I have found that multi-faceted strategies are significantly more effective in producing profitable results. I would definitely encourage exploring creative strategic approaches. Who knows, it might just be a turning point in your trading journey.
Final Thoughts
That’s it for this one. Don’t let the boring sideways chop fool you, this is “business as usual” for this particular stage in the journey. It’s time to get ready, continue accumulating, and keep pushing on. Before you know it, we will be in the heart of 2024 and things will be a lot more exciting! See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
