Do you recruit helps (friends, partners) to develop your systems or do you prefer to do it all by yourself ? Sometime, a system may take quite some effort to implement, it will take long time to develop it alone. But, by recruiting friends, partners, you run the risks that your secrets will be leaked. What do you do ?
I spent many years developing a system but after many years I realized that it takes more then a system to be successful. Now, my philosophy is a different approach 1.) First, viewing the market on a Macroeconomic level to determine my long term trend of the market UP or DOWN, 6 months to 2 years out 2.) Look at the Socioeconomic view point to determine if we are in a general accumulation, distribution or trending phase (3 to 12 week phase) 3.) Use Technicals to enter, re-enter or exit positions 4.) Fully understanding options and how they can be used to protect and maximize profits 5.) Though I would say that the most important part is understanding how to Lose. Currently: 1.) DOWN 2.) Nearing a first leg distribution 3.) Everyone can tell you we are overbought but still awaiting that signal that confrms down.. Though you have to have full protection in at this point. 4.) Fully protected 5.) I got a few body punches on this last rally over the last couple days but feel good overall If you find a system that works for you thats great but its not necessary if you understand how to get thru those 5 areas and as the other poster said... having it stolen is the least of your worries,. Good Luck
Get ideas from others, but develop the system yourself. The best you can hope for is "ideas" rather than concrete data from other people because if someone has a system that works, chances are they won't share it because they're afraid of losing their "edge" or whatever. I have gotten some fantastic ideas from others, tho, that I would never have come up with on my own.
I disagree. Well, unless you're one of those people who can't follow a system. I always see thread about "oh man, I broke my rules and lost $1,000 today!!! Why can't I follow my rules??!!" But I never understand that because I have zero problem following a system's rules. My problem is coming up with a system that works. I have lost a lot of money by following 100% a systems rules with zero deviation regardless of my emotions. Following a system is not a problem for me (altho it seems to be for everyone else on ET). I wish I knew where everyone was getting their profitable systems, tho I understand what you're getting at, but every one of those criteria can be broken down into yes/no; 1/0; redlight/greenlight. Technically you still have a system with a ton of factors that eventually lead to "buy" or "sell" or "do nothing." It's a pet peeve of mine when people act like they have some magical trading intuition that cannot be quantified. I'm not saying you're doing this, but if this thread continues there will undoubtedly be people saying "system; bad, discretionary; good," but "discretionary" is a system; they're just unaware of the 100s of subconscious conditions they're dealing with in order to arrive at their decisions. I will admit that it's possible they're unaware of it and that they cannot teach it, but I get annoyed when they suggest that it's not a "system."
I think you're right (or very close to), but like you're saying there's 100s of small conditions and clues which the brain considers and finding and quantifying all of those is an impossible task.
ROFL...very good observation. One thing that kills me about ET is that there are so many posters who seem to think that all they need is more discipline, when they have no edge. If you believe in something hard enough, that means that you can make it true if you've got the proper discipline, right? http://www.youtube.com/watch?v=gEDaCIDvj6I Same with trading, it takes far more than discipline to succeed. Either that or outrageous luck, which runs out at some point. At least you REALIZE you need edge, which I can only hope improves your chances!
IronFist I guess I meant it more in a mechanical system. Not saying it cant be done, just saying I couldnt find one that worked for "me". Ive mutated into a position trader from a daytrader and life is much better on this side for "me". In the grand scheme of things, if it works.. continue to do it, if it doesnt... well... thats kind of what most do... GD
Get one of those programs that develop system for you (search for systems) according to your criteria (day vs. swing trading, high vs. low frequency, high vs. low R:R, etc.) Do not waste your time testing systems when most traders use programs that find systems and can get them to generate several alternatives for further screening each day or week. Using some of these programs does not require programming at any level. GOOG : automatic development trading systems