The Holy Grail in Trading: (Holy Grail Trading Strategy)
What is the holy grail in trading? Is there a holy grail trading strategy?
The closest thing to a holy grail in trading is diversification. There is no holy grail trading strategy or strategies, but consistency can be achieved via non-correlated strategies. This is not a simple process but requires hard work plus delayed gratification.
Something that a person or a particular group of people want very much to have or achieve.
- Cambridge Dictionary defines the Holy Grail
Many traders are looking for the holy grail in trading, but end up disappointed and disillusioned. Let us tell from the start that there is no holy grail trading strategy.
It’s the sum of many trading strategies that possibly can be labeled the holy grail in trading.
No single strategy works all the time, and no single trading technique or style makes you a millionaire. This is why you need to develop a portfolio of many trading strategies that complement each other.
Many traders waste their time trying to make a good strategy into a perfect one, only to realize the trading results don’t match the curve-fitted backtests. But many sub-optimal trading strategies can potentially be used to make a portfolio of strategies that gets you closer to the Holy Grail trading system.
However, trading requires skills, experience, and a long-term mindset. It’s hard to delay gratification, which is one of the main reasons most traders end up losing. Trading is a risky business, and what looks easy in hindsight is not as obvious when you are in the middle of a drawdown.
An equity curve based on the holy grail in trading
The holy grail might resemble an equity curve that looks like this:
Your capital’s slope goes from almost zero and grows steady towards the upper right corner with practically no drawdowns. It might even look better if you manage exponential growth.
However, even the most naive beginners understand that the equity curve above is not achievable. If you manage such an equity curve in a backtest, you can be pretty safe you are doing something wrong, either having the settings looking forward or you are