Holy Grail Trading Strategies: Fact or Fiction?

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Do Holy Grail trading strategies exist?

Yes, they do.

But…

It all depends on how we define a grail strategy.

So in this article, I’ll get into what a Holy Grail trading strategy is, and more importantly, how you can discover your own Holy Grail.

The Definition of Holy Grail

There’s no agreed upon definition of a Holy Grail trading strategy, so I’ll give you my definition.

Other people will have their own definitions and that’s great.

But for the sake of what I’m going to talk about here, I need to define a Holy Grail:

A single trading strategy or portfolio of strategies that a trader feels is worth trading because it gives him the long-term return he is looking for.

That’s it, super simple.

Ultimately, that’s why we trade.

Therefore, I believe that there are grail strategies, but they are not what most people might think.

Holy Grail Trading Strategy Misconceptions

Many new traders think that a Holy Grail trading strategy is one specific strategy that they haven’t discovered yet and it will provide them with unlimited profits forever.

That’s obviously a myth.

A few trading educators have also named their trading strategy “The Holy Grail.”

Sometimes they actually believe it, sometimes they are just being sarcastic.

Whatever the case, be sure to steer clear of anyone who claims to have a trading strategy that cannot fail.

All trading strategies can fail, even if the most successful trader in the world uses it.

Here’s why…

The Most Profitable Trading Strategies are the Ones That Match YOU

Now obviously there are plenty of profitable trading strategies out there.

Hedge Funds wouldn’t be a thing if their strategies didn’t work.

However, many retail traders get caught up in chasing the wrong Holy Grail.

This is very important, so pay attention. 

Your Holy Grail trading strategy will be different from almost every other trader in the world.

I’ve seen traders do well day trading just one strategy.

Other traders prefer trading a portfolio of swing trading strategies.

Some traders trade multiple markets, while others prefer just one.

You get the point.

The bottom line is that you have to trade a strategy that works well for YOU.

Most of the time, that means you’ll have to tweak existing strategies to find something you like.

So the faster you can internalize this fact, the faster you’ll be able to find a trading strategy that is profitable over a long period of time.

The Grail is Already Within You

Now I’m going to get a little philosophical for a moment.

Another reason that I believe that there are grail trading strategies is because I feel that the mythic “Grail” of ancient lore is actually much closer to home.

In the Indiana Jones movie, they go searching for a cup.

But what if the cup is simply a metaphor for what’s already inside you?

And what if a Holy Grail trading strategy is simply another metaphor for trading based on your innate personality?

Believe what you want, but that might be something to consider.

Final Thoughts

When I first started this website, I believed that there is no Holy Grail trading strategy.

But I changed my mind.

After a lot of experience and live trading, there are undoubtedly methods that successful traders use over a long period of time.

That’s a grail to me. 

Successful traders also have techniques for developing new trading strategies and that could be considered a grail system as well.

So if you want to find the best long-term trading strategy for you, stop chasing the latest trendy strategy on TradingView.

Start reviewing your trading personality, and developing strategies that make sense to you.

Backtest your strategies to find out if they have an edge or not.

That’s how you find a grail strategy.

Yes, it takes work, but the rewards can be tremendous.