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Instrument Vs Strategy

There is strong Natural inheritance between Strategy and underlying instruments especially in financial world.

If you choose Single instrument for investment or trading you have to apply multiple strategies to make profitable in longer run. No any single strategy become profitable by using single instruments.

Same if you want to apply and want to get success in single strategy on longer run , you have to apply it on multiple instruments. It's not very effective on single instrument all the time.

Now just make it simple, Suppose if you choose only one instrument for trading e.g. Nifty , you have to deploy different strategies like directional , neutral, straddles, strangle, vertical spread, credit spread, debit spread according to market direction, trend, momentum accordingly.

But suppose you have to only use Break out or pull back strategy then you have to apply this single strategy on multiple stocks, indices, commodities, forex level.You can not apply it on single stock, or indices on regular basis to get benefited on longer run.

Conclusion : Either you select your instrument or strategy first then apply it through above principle.