When it comes to breakout trading, I can pretty quickly create a viable, reliable strategy on nearly any market.
But there ALWAYS will be some exceptions.
Exceptions, that give me a really hard time. And that takes me 10 times more to come up with viable strategies.
Mostly, these are CURRENCIES.
I do not like currencies in general. These markets are unstable and unpredictable.
But because I decided that I want to include EVERY tradable market in our hedge fund, I decided to get into currencies as well.
Some of them are a bit easier, like EC or BP.
But when it comes to others, like SF (Swiss Franc), you need to really have a lot of patience.
Even after weeks, this is the absolute best I can get (Fully Out-Of-Sample compiled equity, created with my proven framework I share in the Breakout Strategies Masterclass):
Here some more stats:
Symbol=@SF
TF=80M
Style=Swing
LSB=Long/Short
NP(USD)=92,450.00
NoOfTrades=706.0
AvgTrade(USD)=130.95
ProfitFactor=1.49
MaxDD(USD)=8,137.50
I know it’s not bad. Actually, it’s pretty good.
But in different markets, I can do MUCH better. Like a much better NP/DD ratio, a smoother Out-Of-Sample equity curve and higher Avg Trade (especially for swing strategies).
Fortunately, even strategies like this can still be significantly improved with universal techniques like Smashing False Breakouts. Besides, when it comes to portfolio construction, it is more about the correlation than a single equity curve and often I can easily accept a way WORSE strategies into the portfolio because they serve a specific purpose – smooth the overall portfolio equity curve due to low correlation.
But this doesn’t change the fact that some markets are simply more difficult than others and we need to work harder to make them work.
My advice is – leave these for last. Start with the easier markets, like e-mini indexes. (If you don’t know how to start exactly, join the 14-day breakout challenge). And then go progressively through the more challenging markets.
Which markets are really challenging for you?
Happy trading and enjoy the summer.
Tomas
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