#MyStrategyEvolution
The evolution of a trading strategy is a continuous process of learning, adaptation, and refinement. It's rarely a static "set it and forget it" thing, especially in dynamic markets like cryptocurrency. Here's how a trading strategy typically evolves and what triggers those changes:
Phase 1: The Beginner's Quest - "The Holy Grail" Syndrome
* Initial Approach: Often starts with a simple idea, perhaps learned from a YouTube video, a friend, or a basic book. This might be a simple moving average crossover, a single indicator (like RSI overbought/oversold), or just "buying what's trending." There's often a belief in finding a "holy grail" strategy that always wins.
* Motivation: Desire for quick profits, excitement of the market.
* Mistakes Made:
* Lack of a defined plan (no entry/exit rules, no risk management).
* Emotional trading (FOMO, FUD, revenge trading).
* Over-leveraging.
* Jumping from strategy to strategy (strategy hopping) after a few losses.
* Ignoring transaction costs and slippage.
* Evolution Trigger: Consistent losses, blown accounts, immense frustration, or a sudden realization that "this isn't as easy as it looks." This is often the phase where most aspiring traders quit.
Phase 2: Learning and Experimentation - "The Technical Rabbit Hole"
* Initial Approach: Realizing that a proper strategy is needed, the trader dives deep into technical analysis. They start learning about multiple indicators (MACD, Bollinger Bands, Ichimoku, etc.), chart patterns (flags, triangles, head & shoulders), and candlestick patterns. They might try combining several indicators to get "more confirmation."
* Motivation: To find a reliable system based on objective rules.
* Mistakes Made:
* Over-optimization (curve fitting): Trying to make a strategy perfect for historical data, making it brittle in live markets.
* Indicator overload: Using too many indicators that give conflicting signals, leading to analysis paralysis.
* Still often neglecting proper risk management, or having stop-losses too tight/wide.
