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Thread: Leave your rigid trading systems behind.

  1. Default Leave your rigid trading systems behind.

    No disrespect here meant for your systems trader that use specific rules upon entry and exit but i just do not understand logically how you can ever nail down a system 100 with specific rules?

    If this was the case you could then automate it and make a fortune? But logically there is no such thing as a really profitable automated system, is there?

    So, the way i see it and always have is that trading with entry and exit points is always a dynamic risk assessment based on all the information that is being absorbed right at that moment from a multitude of places such as technical analysis, news, correlation to other market movement, S/R, recognised patterns, individual statistical analysis etc etc

  2. Default

    From years of watching the markets, its movement, correlation etc then your brain can make those decisions that a system could never as would be far too restrictive?

    What i am trying to say is that anyone can follow a specific system, specific rules, but the goal should be to be able to dynamically adjust your trading each time based around the behaviour of the markets at that given time and all the information available to you to make that split second decision?

    That means a hell of a lot of screen time, the ability to absorb a lot of information and to think outside the box as in what it means at any given moment? I know i am being a bit vague here but that to me is real trading and the ultimate goal in this business? and there is no short cut to getting to that stage, just time and ability.

  3. Default

    So ultimately you are saying that a trading system should be based on emotion and gut feeling?

    How can you ever achieve consistency? How can you have confidence in your system if the parameters are not fixed?

    Personally I couldn't disagree more with this OP. in order to build confidence in your trading you need a defined set of rules to work under. If you are overriding your system with hunches and external information then your trading system is not complete and you haven't defined all of the rules.

  4. Default

    Hoggums, becuase if it was as simple as a total definition of rules then why not automate it? I am saying that all the many parameters that come into effect when placing a trade cannot ever be summed up in a simple set of rules. If it was a s simple as just finding the right set of rules, you could ultimately get a monkey to trade becuase they would only be in reality following instructions.

    I see it as continually and dynamically assessing each situation in its own merits, you say hunches and gut feeling I say experience and skill from years of screen time and the right aptitude to make that split second decision.

    The market dynamics are so complicated with so many variables how does anyone think that it can all be summed up by a set of rules for trading?

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