适者生存 (Survival of the Fittest)

The market is an ever-changing environment, and my position is an organism that is trying to survive and reproduce.

With this in mind, I've tried the following strategy for a few weeks now. The results look encouraging.

1) First thing Monday morning, buy 0.01 lots in a dozen pairs. (ie. drop 12 organisms into the environment.) No stops.

2) Mid-afternoon, kill the losers and reverse their position, again 0.01 lots. For the winners, put a stop at break-even and add one more position 0.01 lots. (ie. reproduce.)

3) Have another look last thing at night, and repeat the process.

4) The first successful order determines the subsequent orders on that pair, until BE is hit. For example, if the first buy is alive, only buy orders are allowed. If the first buy is alive and the second buy is dying, kill the second buy until the price rises past the previous high. In this world you have the power to raise the dead.

5) When a new position is added, all previous winners must have stops at break-even. Only one position per pair is exposed (and at 0.01 lots, the risk is small.)

5) All positions are closed last thing Friday night.

It's basically a way cutting loss, catching a small trend and pyramiding in. Last week was my best result, netting $450, and this week is up $63 so far.

Anyway, it looks interesting. Someone with programming skills might feel inspired to run some simulations.

Cheers.