It’s a popular belief among new traders: “A good strategy should work on all markets—forex, stocks, crypto, indices, you name it.” The idea sounds reasonable. After all, price is price, and charts are charts. But in reality, expecting one strategy to work universally across all markets is a flawed approach.

Let’s break down why and what actually makes a strategy effective.

Different Markets Behave Differently

Each market has its own:

• Volatility characteristics
• Liquidity levels
• Market participants
• News drivers
• Session timings and structure

A trend-following strategy that works well in the forex market might struggle in equities, which may be more sensitive to earnings or macroeconomic data. Similarly, crypto markets operate 24/7 and exhibit higher volatility and unpredictability than traditional markets.

One Strategy Can’t Fit Every Purpose

Successful trading is about finding edges within specific conditions. A scalping system designed for fast-moving forex pairs won’t necessarily perform well on a slow-moving stock index or an illiquid crypto asset.

Trying to stretch one system to fit all markets usually leads to diluted performance and poor risk control.

Backtesting Must Be Market-Specific

If you design a strategy on EUR/USD, its parameters are tuned to that pair’s behaviour. Applying it blindly to Bitcoin or the S&P 500 without adjustments is statistically invalid.

Each market requires:

• Separate backtests
• Tailored stop-loss and target levels
• Adjusted position sizing and risk parameters
• Contextual understanding of market dynamics

Adaptation Is Better Than Universality

Instead of expecting one universal strategy, aim to develop adaptable frameworks. For example:

• A breakout strategy could work across markets if tuned to each instrument’s volatility and structure
• A trend system may need different moving average settings for crypto vs gold

The best traders don’t use one rigid method—they use principles that adapt across environments.

What You Can Share Across Markets

While exact strategies might not translate across all assets, certain core skills do:

• Price action reading
• Risk management
• Trade journaling
• Position sizing
• Emotional control

These form the backbone of any trader’s edge, regardless of the instrument.

Conclusion: A Good Strategy Is Market-Specific, Not Universal

A truly profitable strategy is tailored to the market it’s built for. Expecting one system to perform equally well across all markets is unrealistic and often leads to disappointing results. Focus instead on adapting your approach to the unique conditions of each asset.

To learn how to develop versatile strategies that adapt to different markets intelligently, explore our Trading Courses built to teach you how to think like a trader—not just follow rigid templates.