Thinking about how trading strategies need to always be changed and how one strategy may not work for a long time, what do you do with the strategy that you are about to change. do you just forget about it completely once a new strategy starts working for you? or do you keep it in remembrance for the future. If you have experienced this before; has any old trading strategy that you decided to apply work for you? Is it possible that old strategies may work in the future again?
I think that there are three types of trading strategies categories.
- Classic: These are strategies that can never change. They are based on timeless, tested, tried and true trading principles that have been since the inception of trading. They can never change or be modified because once done right it brings it the desired reward.
-Old: These are just old trading strategies that used to work sometime in the past but do not work anymore. They were like the hot cake them and people easily followed them, but they were developed to for the different market to bring and so as the market changes, they become obsolete.
-New: These are strategies that comes up when old strategies are abandoned. They can also be used in addition to the classic strategies to make them work better. New strategies are like tips and tricks. They work at the moment and soon may stop working. They need to be modified frequently to help them stay relevant.