The market is bad

That is the most-used excuse thrown by unprepared users when their bots are burning (in a bad way). Yes, the market might be bad, but your strategy is already bad in the first place. The “bad” market only expose your strategy.

I will use a simple analogy to explain this. Let’s say you have a child, You train your child on how to swim on a swimming pool. After the kid can swim in the swimming pool, the next day you take the kid to a beach. Then you say to them “Go swim as far as you can”. In the beginning, the kid might have no issue. But the farther they swim, the current is stronger. They will start to have issue. Then when they drown and people blame you for let them swim into the ocean, your response is “the current/waves is bad”.

There are steps to be taken before you can let the kid swim in the ocean. For example, there are some swimming pools where they can create waves. Test the kid there first. Are they strong enough to handle the waves? How strong is the waves that you trained the kid on? How long do you expose the kid on the waves? And all other preparations needed to build the experience and skills.

Same thing with trading stategy. Have you train it on extreme bull and bear markets? Have you make sure that the test simulate actual live trading condition (avoiding trailing stop trap for example)?

Never blame the market. The market will always behave a certain ways whether you are trading or not. As I like to say, we are just a drop of water in a vast ocean. We are the one that needs to adjust to suit the market (good or bad), and not the other way. Accept that your strategy is bad, and work to improve it. I have had plenty of failed strategies. But I take the lessons and work to improve my next strategies.

I will leave you with a famous saying

It’s stupid to keep doing same thing over and over again, but expecting different results

The internet

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