TRADES MULTIPLE STRATEGIES IN EACH MARKET
Our strategy trader has also learned to recognize that every market goes through
different types or phases of movement. He is finding out that it is possible to
define what that movement is and develop a strategy to profit from that action.
He may say, “I used to only make money when a market was in a trend; I am
basically a trend trader. But a few months ago I added a Volatility Breakout
strategy to compliment the trend strategy. When a market is not trending, I can
still get some money out with the VB strategy. This money to some degree funds
the trend-following strategy drawdown in a non-trending market, and levels out
my overall cash flow.”
As you can see, our trader is now talking an entirely different language. He has
become a sophisticated money manager, intent on maximizing the profits of his
business. He has come a long way from being a seminar junkie, consumed with
Indicator Fascination. He realizes the value of technology, and the immense
capacity of software like TradeStation. He adds, “I really don’t know how I would
do this without today’s software and technology. It would be like trading blind.”
Or like being a discretionary trader.