Can you follow your system?

Discussion in 'Psychology' started by ADX_trader, Oct 14, 2002.

  1. Can you follow your system without second guess?
     
  2. If you are a good trader, knowing when to not follow your system can make a huge difference.
     
  3. I know in some cases, you need to break the system. The problem is when you developed such habit, you ego would gradually replace the system. If you made some profits by breaking the system, you would think that the system was not working or your own decision was better than it. Just like those drug users, when they first tried the drug, they thought they could control themselves. Eventually, the drug would control them.

    How to balance those factors is really tricky.
     
  4. JWS11

    JWS11

    Still working at it. However, I have an easier time following systems that I have created compared to those which i have purchased and i don't really understand.
     
  5. SWJ12

    SWJ12

    You can if you understand the underlyings of the system. If it's built from some inherent observation of market behavior. If it's just a pseudo-random collection of indicators with no real empirical reason why the system should work I think it is harder to follow.

    I also like systems where are variables are known. I've tried black-box systems and proprietary indicators and have had no luck with the results (I often wonder why they sell these great tools if they work so well). Not only that, but in one case when a proprietary indicator did well the first week I used it, then saw 6 consecutive losing weeks, since I didn't know the internals of the indicator I could no longer have faith in it. Not only that, but if I developed my own system I could tweak it if I discovered a flaw, but no such luck with the proprietary indicator.

    So I think you can follow your system if you fully understand it's internals and its meaning in relation to the market.
     
  6. I recalled a guy who said, for short-term trading, very few information will surface, so you had better off sticking to your system and plan. But for long-term, you might need to digest the news and made decision based on it.
     
  7. If you are truly following a "system" and there are moments when you choose not to follow it, in my opinion either your system is incomplete and you know it (then why else not follow it) or you're just assuming you know something about the market based on a hunch.
     
  8. nitro

    nitro

    When I worked for a hedge fund, messing with the system ONCE it was in a trade was considered sacrilegious. However, there were definitely days or times that everyone agreed the system should be kept out by force by human hands and everyone was fine with that.

    nitro
     
  9. If you keep at real trading long enough, perhaps you will be able to offer comments based on your experiences in trading, rather than just your fantasies of real trading.

    Why not just read and listen for a while to those who actually have traded successfully for years? You will be able to learn more about how to trade by listening than by overposting.

    If you cannot control your overposting, how do you think you will ever be able to control your impulses during trading?

    You continue to offer up an opinion based on no real experience.

    You sound like someone giving marriage advice, never having been married yourself.

    Zero credibility.
     
  10. You know what will mess with your mind? I'll tell you what will mess with your mind. You're trading a system and it keeps losing (now you knew when you were of sound mind and body that the system wasn't going to win every trade, but that's besides the point) so anyway, the system keeps losing, trade after trade, and you hear this little voice in your head, and it won't go away, and it just keeps saying,

    "Insanity is doing the same thing over and over again and expecting different results."
     
    #10     Oct 20, 2002