Change strategy or optimize strategy? Make no mistake!!!! Sometimes your trading strategy does not achieve the desired result and this makes you quickly move towards changing strategy or optimizing your strategy. You need to know that no strategy is perfect and without flaws and all trading strategies that have been created and used so far have their own strengths and weaknesses.
What I have experienced in this regard is that changing strategy is a difficult task in that you have to start from scratch, so most successful traders have achieved success based on focusing and optimizing their trading strategy. Do not make the mistake of quickly abandoning your failed strategy, but rather identify and improve its weaknesses. Jumping from one strategy to another is a mistake that ultimately ends in losses and loss of time.
But how do I optimize my trading strategy?
The performance of a trading strategy is determined by taking various tests. In fact, you realize that your strategy has performed poorly when you have not obtained acceptable results from it in the tests.
Usually, strategy testing is done on a training trading account, meaning that all free trades are opened, which is known as a demo account. To optimize, it is necessary to identify the weaknesses of the strategy, meaning that you see exactly in which trade you have suffered the most losses and identify them with technical analysis and available tools. Go into more detail and identify which trades have been closed with more profits. In general, in the first stage, you should identify the weaknesses and strengths. Find the reasons for the loss of trades and try to improve them with analytical tools such as indicators and… I have had the experience of jumping from one strategy to another. I know that changing the strategy is not the solution to making profits and minimizing losses!
I believe that every trader should stick to his trading strategy to make more profits and less losses and create a profitable strategy every day by updating and adding more information. What do you think or do you agree with me???
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