Day trading, whether you're using price action strategy or indicators, is a relatively fast paced version of trading when compared to swing trading or investing. To become a truly proficient trader, you must have a robust enough strategy to capitalize on market movements in several different conditions (slow and quick moving markets).

Within my day trading course I teach a strategy that has been proven many times to create successful traders who can pass funding challenges and get consistent payouts because it is a strategy that is robust and dynamic enough to perform in “good” or “bad” market conditions.

Some trading strategies just aren't very durable or dynamic and tend to only work when market conditions are “ideal”. That’s why today, we’re going to discuss what makes a dynamic and dependable price action trading strategy

Picking A Proven Historically Profitable Day Trading Strategy

A mistake that many beginner day traders often make is trying to come up with their own strategy from scratch, tweaking an existing proven strategy (negating it’s edge), or simply getting duped into picking a trading strategy that has no real edge. 

Forget all the drivel you hear online about trading psychology. The foundation of any successful trader is their trading strategy, not how they react to losses. You can have the perfect trade psychology but without a proven edge you’re guaranteed to lose money in the market.

Your trading strategy needs to be clearly defined and well-tested in order to deliver consistent results. Due to its dynamism and effectiveness I highly recommend starting with a price action strategy rather than one that uses lagging indicators.

Price action trading allows you to make sense of the market in different conditions, and this means you don’t have to wait around for the perfect market conditions to trade. A good price action trading strategy can and should work well despite the market moving with a lot of volatility, or not.

What Makes a Trading Strategy Proven and Durable?

Seeing as successful day trading requires a durable and dynamic trading strategy, it would help to know what makes a good trading strategy in the first place. 

A good trading strategy will have clear rules that outline when to enter the market, and keep you out of the market when those criteria aren't being met. Suppose there is any confusion or second guessing. In that case, that’s a sign that the strategy is too discretionary, which can lead to decision fatigue and thus increase the chances of you making errors in your judgment. This of course can lead to forcing trades, missing them, or revenge trading because you lack awareness about whether you’re entering valid trades or not.

Consistency Across Different Market Conditions

An essential aspect that allows for a durable trading strategy is its ability to perform in a variety of market conditions, whether bearish, bullish, or ranging. Markets aren't static, nor are they highly predictable. This means that your strategy needs to be adaptable in order for it to perform in the long term.

If your strategy only works well in one type of market, then it's simply a sub-par strategy. This is one of the reasons why I teach price action trading within my trading course, because it excels in numerous market conditions. You’ll learn to focus on reading raw price movements rather than relying on lagging indicators or highly discretionary technical analysis.

Finding A Strategy With A Proven Track Record

A good trading strategy is one that has been tested over a prolonged period of time. Any trading strategy worth its salt should have been backtested or forward tested in the live market to test  its performance under varying market conditions. Just remember that a strategy's past performance doesn't necessarily guarantee future success, although it certainly helps.

Key Elements of a Dynamic Trading Strategy

There are several key elements that a dynamic trading strategy needs to have so that it can adapt to changing market conditions. Being adaptable, flexible, and responsive to new information is essential.

Flexibility in Execution

A good strategy should allow for flexibility in execution, which means that it should allow you to quickly make adjustments based on current price action and new data in real time. The market isn't always super clear, which can be a problem when looking for clear entry and exit points. 

This means that you shouldn't be overly rigid in your trading approach, as this may lead to missed opportunities. However, price action trading strategies tend to excel on this front.

Adaptation to Changes In The Market

A dynamic trading strategy also needs to be adaptable. Whatever market you decide to trade, you have to remember that they can be heavily influenced by things like high impact news, causing spikes in volatility. Therefore, your trading strategy needs to be able to adapt to or stop you from taking trades in these rapidly changing conditions. Your trading strategy should keep you out of the market when there is extreme volatility, uncertainty, or other such situations where trading is likely to be unreliable.

Stress Testing the Durability of a Trading Strategy

In order to ensure that your day trading strategy is both dynamic and provides good account durability, you’ll need to test it under a variety of market scenarios and conditions. For instance, markets can move sideways, there are periods of high volatility, and there can be sudden rallies or, conversely, downturns.

By applying your trading strategy to each of these market conditions, you can test to see just how dynamic it really is. If your strategy happens to fail in a certain market condition, it doesn’t mean you should abandon it, but you should ensure there is something to safeguard you from getting chopped up in those types of conditions.

One of the best ways to determine whether the strategy you’re trading lends well to account durability is to see what the strike rate is like after a long series of trades in several different market conditions.

Conclusion

By using a durable, dynamic, and adaptive trading strategy, you can ensure the best possible results whenever day trading. If you want to learn a highly proven trading strategy that has helped several people get funded, my futures trading course is here to guide you to build up a profitable trading career.

That’s it for today guys! 

Thanks for reading,
Brian