The strategy you intend to trade will usually be determined by your beliefs about the market and the objectives you're trying to achieve. Therefore, your beliefs and objectives will determine your Key Idea.
Your Key Idea is your working hypothesis; the foundations of your strategy and how it will work.
One of the most famous Key Ideas was declared by the Turtle Traders, specifically Richard Dennis. Being trend traders they acknowledged that every trend, without fail, was preceded by a breakout. From that start point they used a standard channel breakout to enter plus they had a 'fail safe' breakout entry which guaranteed they'd capture every new trend.
Our long term of the ASX remains unchanged; a corrective pattern higher has been unfolding off the 2009 lows, albeit at a much larger degree. Numerous headwinds remain, specifically:
→ Sentiment continues to weaken. → Banks to remain under pressure on housing weakness. → More evidence suggesting a cyclical high is close. → Cost cutting may have run its course, which has been the driving force for earnings.