1. Fair Criticism-min

A Fair Criticism Of The PAST Strategy

Hi there PAST Traders

I hope you’re enjoying holiday season!

I managed to get away on holiday for a week at the start of the month. It’s important to take a break from the markets every now and again. The month of August, when the markets tend to be quiet, is a perfect time to take a step back.

I might have been away from the trading screen, but I took time to mull over the markets quite a bit. Not only that, I was also thinking about the topics I’ve been writing and making videos about here on ForexUseful.com.

Over the course of any given year, you can break down the subject matter of my blog posts and videos into 3 categories:

2. pie chart forex useful-min

Category 1: I’m happy. The pips are rolling in, a setup is working out, and trading is going well. But, you might have noticed, these posts are usually tinged with a worry that I’m not making the most out of the opportunity

Category 2: I’m complaining that the market isn’t moving my way

Category 3: I’m complaining that the market isn’t moving at all

As you can see, I complain a lot.

Even in Category 1, when things are going well, I’m complaining that I might not be taking full advantage.

I don’t know how you Forex Useful Members put up with me! 🙂

The thing is, I’m only describing the markets how I see them. And the truth, for me anyway, is that there are more times during the year that trading is tough, as opposed to times when it’s easy.

I’ve often compared myself to a farmer.

3. Forex farmers

(this is a still from my “How To Develop Big Winning Trades” video, where I talk about this topic)

Farmers work hard all year, but don’t get paid regularly. There’s no salary at the end of each month. They get paid in one big lump sum after they harvest their crops or sell their animals.

The PAST Strategy sometimes feels like farming. Long periods of small losses, followed by a big gain, followed by another long period of small losses.

(Farmers are world champion complainers too, so that makes my comparison even more apt ;-))

Fair Criticism

So, what about the criticism then?

Well, the criticism doesn’t come necessarily from other people (although I’m sure there are people out there who don’t think the PAST Strategy is for them).

It comes from me.

While I was on holiday, I spent time criticising how I trade.

I criticised my strategy.

Yes, I looked at the pros, but I was devastatingly honest about the cons.

Don’t get me wrong, on its day, the PAST Strategy can be incredible. When a market is really moving, and when a reversal really develops, when you get a few positions in play, I firmly believe that there is little out there that can touch it.

The profit racks up fast.

It’s exhilarating.

But lately, that high hasn’t been lasting for long.

Once the move is over, we’re quickly back into the monotony again.

Watching, waiting, for seemingly ever longer periods of time. PAST Traders, myself included, have had to contend with a lot of downtime recently.

Tiny ranges can persist. Where the market retraces over old ground. Not once or twice, but repeatedly. Over and over again.

If there’s no real movement, there are no real profits.

None of this is anything new, by the way. I’ve written about it before.

The PAST Trading Strategy really suffers during quiet periods. It doesn’t blow up, granted, but the long periods of inactivity can take their toll. Especially on the psychological side of trading. And if, for whatever reason, you miss a couple of big winners when they do come along, you can be in for a long wait until you get the next opportunity.

As you can see here on EURUSD, we’ve been over old ground every few weeks for all of 2016:

4.EURUSD

This is why I always emphasise the need to really get aggressive when the market is going our way. It’s critical to make the most out of these opportunities when they come along. It’s central to the viability of the whole approach.

I’ve known about this weakness since the start. And it’s something that I’ve just learned to live with. But perhaps now is the time to try to do something about it.

So, what’s the answer?

Well I can tell you one thing for sure. I’m not going to tinker with the PAST strategy.

Rules are rules.

I’m a firm believer that reducing standards to generate more trading activity in a market that doesn’t warrant it is a one-way ticket to losses.

You can’t dilute beer and expect the taste to remain the same.

But equally, I accept that the market changes, and we have to be able to adapt too.

So, while I was on holiday, I’ve been thinking about how I could possibly supplement the PAST Strategy with something else.

Let’s be clear – I’m not rushing into anything

This is a big step for me and something that will require a lot of thought. I’m not a natural multiple-strategy type of trader. I find it difficult to change tack.

While I’m considering this, the PAST Strategy will continue to be my bread and butter. And my fundamental core principles of risk management will continue to guide me no matter how I trade.

I suppose I’d just like to even things out a little bit more.

Maybe aim for slightly lower highs and use that wiggle-room to even out the lows.

See that pie-chart above – I’d just like to have a little less complaining in there, if at all possible.

Will I be able to come up with anything?

I’m not sure, but I’ll keep you posted either way!

And if you’ve any suggestions, I’d love to hear them in the box below.

All the best,

 

Nigel

P.S. If you found this post to be helpful or of any use to you, please share it with other traders by clicking on the share buttons on the left hand side of the screen

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DISCLAIMER & COPYRIGHT

This update is based on my analysis on my charting package. It may differ to yours as it can be affected by time, market movements, charting packages and broker prices. I accept no liability for loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on any information in this report or analysis.