It works, but do not expect huge returns.
I have worked on multiple strategies.
- Strategies using technical indicators do work, but you have to reasonable. If you find these giving higher than expected returns, or too many consecutive wins - take the money. Stop live trading and continue dummy trading - eventually there is a point where you can start live trading again. The thresholds will be determined from backtests.
- Statistical strategies work for swing trading. However, these are very difficult to figure out. Need a lot of data (for backtesting). These work consistently over a longer period and might look loss making over a small period.
- Scalping within 5-10 minutes works pretty consistently, signals based on options data.
- Understand and realise the law of large numbers, and use that to your advantage.
- Give importance to understanding the concept of Time. There is a whole lot of weird and scammy pseudo-science around it. Therefore do not blindly rely on one theory.
I have worked on multiple strategies. - Strategies using technical indicators do work, but you have to reasonable. If you find these giving higher than expected returns, or too many consecutive wins - take the money. Stop live trading and continue dummy trading - eventually there is a point where you can start live trading again. The thresholds will be determined from backtests.
- Statistical strategies work for swing trading. However, these are very difficult to figure out. Need a lot of data (for backtesting). These work consistently over a longer period and might look loss making over a small period.
- Scalping within 5-10 minutes works pretty consistently, signals based on options data.
- Understand and realise the law of large numbers, and use that to your advantage.
- Give importance to understanding the concept of Time. There is a whole lot of weird and scammy pseudo-science around it. Therefore do not blindly rely on one theory.