How do you keep a strategy simple?

Simple strategies survive contact with real markets; complex ones die of their own exceptions. But simplicity takes discipline — the urge to add a filter for every loss is constant.

How do you keep a strategy simple? — risk-reward diagram
A risk-reward ratio of 1 to 2

How do you resist?

  • the complexity you've removed and why
  • how you decide a rule earns its place
  • the simplest version of your strategy that still works
How do you keep a strategy simple? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The expectancy guide shows why simplicity tests better.

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