SCOTT WELSH TRADING BLOG

One of My Favorite New Strategies

One of My Favorite New Strategies

May 12, 2021

Want to know a great way to lose tennis matches?

Try out a brand new forehand you found on YouTube.

No one’s ever hit the forehand like this before!

And, in a few months, no one ever will.

Because it’s awful.

Want to know a great way to lose your entire trading account?

Try out a brand new system that makes 17.4% a month using new, artificial intelligence algorithms.

No one’s ever traded like this before!

And, now, no one has any money in their brokerage account.

That’s not to say new is always bad.

Change is essential to growth, and, sometimes, it takes something new to stimulate growth.

But, unfortunately, new is usually a breeding ground for fraudulent.

New is a sales tool to prey upon our insecure hopes.

Brand new is very often unproven.

And dangerous.

Luckily, there’s another type of “new”.

This kind of new can work wonders.

For example, what if we try a new financial independence technique?

Instead of being a FOMO-fueled consumer, what if we suddenly save more than we spend?

We’ve never done it before and struggled with our money.

Now we’re trying this “new” technique of saving and it’s working amazingly well. In a short time, we find our new financial strategy has changed our lives.

Of course, this strategy isn’t new.

It’s been there all along.

What’s new is that we decided to use it.

We didn’t try putting our life savings into obscure NFTs. That idea is brand new, and will lead us…where?

Instead, we placed a big bet on a fundamental principle.

It’s a brand new behavior based on an old timeless idea.

That’s my version of new.

This week, we’re looking at one of my favorite new systems. (See another one of my new favorites here.)

This “new” system is based on the Turtles. Remember the famous breakout traders from the 1980s? This robot was based on their system that’s now free on the internet.

But, years ago, I didn’t want to do exactly what the Turtles did.

When I made this system, I wondered what would happen if we traded on a 4-hour chart. As you know, most trend followers use Daily and Weekly charts.

And I wondered what would happen if we put a profit target on our trades. Blasphemy!

And I wondered what would happen if we put in a time exit and used a shorter trailing stop.

Then I forgot about this strategy for a long time.

So, what happened?

Did those crazy ideas crash and burn? Or did those new old ideas thrive?

Subscribe to the Newsletter to find out! Spoiler alert: the old idea worked pretty well.

Talk to you soon.

Join the free Newsletter list here.

 

To become a Member go here.

 

Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.