🔷12.) Will my strategy work forever ?
From personal experience I have tested lots of strategies and almost all standard technical strategies have edges
If you have done a short term backtest on some you may disagree but there are factors like type of pair and particular time of the year you backtesting , these will randomly influence the results you see that’s why it’s recommended to backtest long term data a and gather Long term stats
My logic here is , if most strategies work , with clear proof of how you see many different traders with different approach still make money , then it means technical strategies play little role in how much you pull out of the markets , which further means the chances of your strategy completely stop working after some years remains an inaccurate information as most traders who complain of this have other more serious problems in their trading other than technicalstrategy
Technical analysis doesn’t move the market neither does the market recognize your lines or rectangles drawn
A strategy would only perform provided its been executed consistently, this means the market rewards routine and not strategy
If you have been able to simplify your strategy so much till the extent all your trades are hyper identical then over a long period of time your strategy may undergo bad market cycles from time to time but will never completely stop working
Those red months or even rare red quarters you may go through also happens to other strategies from time to time
This is why you are told to risk 1-2% max cause these periods are inevitable if you must do trading forever as a career …to survive draw down you must risk little consistently
This is how you come out of losing streaks without the losing streaks blowing your account .
About your strategy working forever?
Yes it will , provided its simple enough and wil not lure you to multiple human errors
Support and resistance trading and candle stick Bible strategies stil work till date and it over decades .
Most trading legends will say how they trade now isn’t how they traded in the 90s , that’s true , but they didn’t change their strategy cause it stopped working , they rather simplified it to what’s suites them the most now as they evolved to the knowledge of the fact that market rewards routine and not analysis.
“So if complicated systems work just as simple strategies do , then why complicate ?”