The Universal Tactics of Successful Trend Trading: Finding Opportunity in Uncertainty (Wiley Trading)

FIGURE 2.1 The universal truth is that profitable trading is not about picking winners, tops or bottoms. It's about the math and being the best loser.

RTT is a simple strategy. It uses only three indicators (two being the same) and has four variables. Let me summarize the trading rules again: Strategy: RTT Developed: 2015 Published: 2015 Data: Daily Approach: Trend trading Technique: Retracement Symmetry: Buy and sell Markets: All Indicators: Moving Average RSI Variables—Number: 4 Moving average

In my opinion, his Four‐Week Rule (please refer to Figure 2.5 in Chapter 2) is one of the most successful trend‐trading strategies to have been developed.

Let's see how this Golden and Death Cross trend‐trading strategy has performed over my P24 portfolio? FIGURE 6.13 The Golden 50 and 200‐day Crossover strategy will stop and reverse positions following a cross over between a 50 and 200‐day moving average. Results Portfolio P24: SB, ZW, CO, SO, HO, LC, GF, BP, SV, KC, CT, ZB, GC, HG, JY, LH, SP, TY,

I do use some indicators in my strategies such as the average true range and moving average indicators; however, as a general rule, I'd prefer to deal with 100% price. The big problem with variable dependent indicators is that they usually lead to equity curve instability, a situation best avoided.

To avoid data mining the trend‐trading strategies I'll review will be run over my P24 portfolio, which contains markets that have been independently and objectively selected based on their diversity and liquidity.

Trend trading relies on three golden tenets: follow the trend, cut losses short and let profits run.

Setup & Entry: Buy a break of the highest weekly high of the preceding 52 weeks Stop: Sell a break of the lowest weekly low of the preceding 52 weeks Sell Rules Setup & Entry: Sell a break of the lowest weekly low of the preceding 52 weeks Stop: Buy a break of the highest weekly high of the preceding 52 weeks Similar to the other strategies

I'm principally a pattern trader. Apart from using the average true range and a 200‐day moving average, I focus purely on price.