My Trading Style and Strategy

I seldom talk about my own trading strategy and most of the time my article share about common strategy that other traders or market players that they apply.

Today I will be sharing with you, what kind of trading style and strategy that I used to help me generate average return of 10% every month

(the return just based on my past performance as past performance is not indication of future result).

When i started trading, I am a trading strategy hopper. What do i mean by that? I like to pick up as much trading strategy as I can from trading Bollinger band, cross moving average, SMA,EMA, RSI, MACD, Stochastic, Fibo, candlestick pattern and the list continue…I thought the more indicators I have in my chart, the better my trading performance will be.

So guess what happened? I manage to achieve consistency…..

of losing trades….yes, you see it right, i experience lots of losing trades!

You might perhaps know the reasoning behind this.

This is because I always experience conflicting and Dilemma situation, this seem to be a right entry but once I jump into the trade, this signal indicate I should be cutting loss and take another direction of trade. Sometime you can’t even decide you should pull the trigger because you waiting for all confirmation for your indicatorssss.

It just get very messy.

Then, I start to look upon all those successful traders, how they actually can manage so many indicators and what is their strategy look like. To my surprise and might to your surprise too. They relied less on the indicators and most of them use only 1 indicator, sometime it help act as their filter and all of them share the similarity, they understand the price action well. They also very focus on one strategy and trade with their designated plan.

This give me a wake up call and huge slap on my face.

From there, I decided to focus on only one trading strategy which from the starting, I specialize in mean reversion trading strategy or so called reversal trading strategy.

When i start to achieve consistency result. I start to try different strategy like Trend following, Swing trading, Day Trading, Order flow trading and even Scalping.

Due to my strong passion and might be a slightly gifted on trading, I pick up and perfect all those strategy in a fast manner.

And you might ask, why I don’t just stick to one trading strategy until I die but instead pick up few of them. Partly due to my temperament that I like challenge and try new stuff. Aside of this there is this idea to have “Emperor Eyes” in the field that you are playing.

Quote from: Kuroko No Basket, Akashi Seijuro’s Emperor Eyes

The more you understand different kind of strategy, the better you understand market players and able to put their weakness to your edge and advantages.

But end of the day if you ask me, what kind of trader I am. I will say I am a portfolio type of trader with incorporate supply-demand strategy who trade short to mid term time frame.

What do you mean by portfolio trader? This mean that we trade across mixed asset classes or multiple position (of different pairs of currency, if just solely Forex) and using technique like hedging and potential arbitrage to maximize our profit and minimize our trading risk.

Then what about supply and demand strategy? Supply and demand is so far the most suitable style that i found across among all kind of strategy, using this concept as a core I can incorporate with all kind of confluence like trade with trend, preparing for mean reversion, macro, order flow analysis and even my favorite technique inter-market analysis.

As i am trading bigger and bigger portfolio trading size, hedging become important factor to minimize your risk. That is why portfolio trading by far is my favorite trading strategy and it is useful when it come to Scalability when your trading size goes to millions or billions, this strategy will still work to its fullest.

The key thing is never ever try to trade by guessing and base on your feeling, as Warren Buffet quote,

Risk comes from not knowing what you’re doing.

– Warren Buffett

If you take trading as a form of gambling, you are just becoming liquidity to the market, very soon you will realize you have run out of your capital.

So what can you take-away from my experience and journey?

  1. Identify your style, what kind of temperament you are, aggressive or defensive? Impatience or prefer waiting game. What kind of trading time frame you looking at
  2.  Then, choose a suitable trading strategy and stick with it
  3. Stick with it, make a trading plan and journal it down after a trade
  4. Rinse and repeat the process until you perfect your strategy
  5. You shall be able to see improvement in your trading

So what are you trading style and strategy? Feel free to leave a comment below.

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