Trading Multiple Strategies
The ultimate objective of every trader, once they survive ruin and see their account balance grow, is to trade a diversified portfolio of markets with a diversified portfolio of strategies. The reasons are two-fold;
- Risk mitigation and
- Maximising trading opportunities.
Risk Mitigation
Diversification across both markets and strategies, including timeframes, reduces a traders reliance on any particular market or strategy to perform well. Being reliant on a single market or single strategy is inviting Mr. Maximum Adversity to knock on your door. No. Not an invitation to knock. An invitation to kick it down! It’s a red flag to a bull. Despite our best efforts to avoid both curve fitting and data mining, there are no guarantees our strategies will continue to perform into the future as well as they have in the past. And that definitely includes my strategies! So the best way to mitigate the twin risk of the market and/or strategy degradation or failure is to trade more than one market and more then one strategy. As traders, we need to embrace the benefits of diversification by trading multiple markets with multiple strategies and ideally over multiple timeframes.
Universal Trader represents a portfolio of my strategies that can not only be traded over a diversified portfolio of markets but can also be traded over multiple timeframes.
Maximising Trading Opportunities
My Holy Grail of trading is to match trading opportunities with a positive expectancy strategy. Trading multiple, yet complimentary strategies over multiple timeframe over the same portfolio of markets will offer a trader more setups. As we know the real secret behind huge profits in trading is money management. For money management to really work a trader needs three elements;
- Small stops,
- Plenty of trades, and
- Good average profits.
Trading multiple strategies will offer up more trading opportunities. As you will see in the performance figures the additional trades on top of Key Breakout’s setups takes the combined money management results of Key Breakout’s $2.1b to almost $4.2b, doubling the result!
Universal Trader’s portfolio of strategies will provide plenty of trading opportunities.
UNIVERSAL TRADER: A Portfolio of Diverse Yet Complimentary Strategies
Universal Trader is a portfolio of diverse and complimentary trading models that include;
- Key Level,
- Key Breakout,
- Key Swing and
- Key Exhaustion
Each model attempts to capture a different part of market structure.
Key Level attempts to trade retracement pull backs aligned with the underlying trend.
Key Breakout attempts to trade breakouts aligned with the underlying trend.
Key Swing attempts to trade mean-reversion swings aligned with the underlying trend.
Key Exhaustion attempts to pick tops and bottoms.
Being diverse the four models, when combined into a single trading solution, allows traders to maximise their trading opportunities.
Apart from Key Level, each model comes with a choice of three trading plans (immediate, short and medium-term) providing additional flexibility and trading opportunities. Key Swing comes with an extra long-term pattern and trade plan.
Combining four independent and diverse models helps to smooth out a trader’s equity curve. Please review the performance results opposite to see why it’s so compelling to trade a portfolio of diverse yet complimentary strategies.
To learn Universal Trader you will need to purchase individual copies of Key Level, Key Breakout, Key Swing and Key Exhaustion. Please visit the SHOP for details.
Universal Trader Performance
Please refer to the links opposite to view Universal Trader’s performance over the immediate (1-3 days), short (5-7 days) and medium-term (20-30 days).