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🔁 When to Stick, When to Switch: Evaluating Your Strategy

Identify if your strategy is truly underperforming or if you need to adjust your execution or mindset

Tim avatar
Written by Tim
Updated over 6 months ago

Not every losing streak means your strategy is broken. But how do you know when it’s time to stay the course — or make a change?

Let’s break it down.


🧪 Step 1: Check the Sample Size

A strategy isn’t proven (or disproven) after just 5 or 10 trades. You need a minimum of 30–50 trades to get meaningful data.

Quick check:

  • Did you follow the strategy exactly?

  • Were you consistent with risk, entry, and exit?

If not — it's not the strategy’s fault yet.


📉 Step 2: Differentiate Between Execution and Strategy

A solid system can fail if you don’t follow it properly.

Signs of an execution problem:

  • Taking trades that don’t meet your criteria

  • Moving your stop loss out of emotion

  • Entering too early or too late

Before switching strategies, make sure you’ve given it a fair shot with disciplined execution.


🧠 Step 3: Is the Market Changing?

Even good strategies can slow down in different market conditions.

Ask:

  • Is the market trending or ranging?

  • Was my strategy built for this type of market?

Adapting to volatility or session times might be the fix — not an entirely new plan.


🔄 Step 4: Tweak, Don’t Trash

If your strategy shows potential but needs refining, try adjusting:

  • Timeframe

  • Risk-reward ratio

  • Entry trigger (e.g., wait for confirmation)

Make small changes and track the impact.


🚨 Red Flags It's Time to Switch Completely

  • Strategy has no logic or edge (random entries)

  • Negative performance over 100+ trades

  • You've outgrown the strategy and need more depth


🎯 Final Word

Jumping from one strategy to another too quickly is a recipe for failure.
Stick long enough to truly understand the system, but don’t stay loyal to a loser forever.
Let the data — not your emotions — guide the decision.

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