I am hoping for some words of wisdom regarding Macro Vs Micro Trading Systems.
People are searching for the one system to rule them all (shocking Lord of the Rings reference there). People talk about back testing, and they talk about the number of securities it is tested against.
You also hear people talking about sentiment and psychology of the crowd.
Each security shares some characterictics with all others.
Each security in a specific sector shares additional characteristics with other shares in it's sector.
But then each shares earns income in slightly different ways even in the same sector.
The share holdings are different.
The size of the company will dictate which funds look at the stock.
Dividend yeild will dictate which funds look at the stock.
The type of the majority share holders ie founders v's funds will affect the liquidity.
** Here is where I am looking for wisom and guidance **
Why should I not select a small group of stocks (but large enough that entries are triggered across the group regularly) and then for each of these stocks look at the entry and exit conditions that work best for it, regardless of that being overbought/oversold condition, MA crossovers, Trend breakouts support/resistance whatever.
Backtesting this particular entry and exit against this stock and then following the plan with revision when necessary.
PS if this has been convered before could someone direct me to the post because I can't seem to find it.