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8 things I look for in a good Trading Strategy:



When looking for a good trading strategy, it's important to consider several factors.

  1. It should have a positive expectation, meaning it should have the ability to make a profit in the long run.

  2. It should be robust, meaning it should perform well across a variety of market conditions.

  3. It should be easy to implement and understand, so that you can quickly make decisions based on it.

  4. It should be able to be tested with a historical data set.

  5. It should be diversified and not dependent on one specific stock or market

  6. It should have a clear risk management plan to handle unexpected events.

  7. It should be tailored to your own personal risk tolerance.

  8. It should be continuously monitored and updated as necessary to adapt to changing market conditions.

It's important to note that backtesting can give you a good idea about the past performance of a strategy but it may not be a guarantee of future results as market conditions change. You can also try a strategy on a small scale before committing a large amount of capital to it.

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