That's maybe your number one problem. If your system is not fully mechanical, you will seconfd guess good signals and front run bad signals. That was my problem some years ago. I have realized that I can't trade even 1% discretionary. If I do this, I am sure to miss the good signals and take the bad ones. Very few people can be good dicretionary or semi discretionary traders. Many people can be good system traders.
Marathon, You are probably correct.. when you say mechanical.. you mean you don't take a trade unless the computer prompts you to?? Is that the type of mechanical system you are talking about??
Just made another good trade in the Euro.. See chart attached.. Bought @ 1.1325 Sold @ 1.1355. Profit = $375.00.. I believe I got out at a good price.. the high was 1.1361.. and the last quote was 1.1338.. What is going on in the Emini.. was waiting for a good short to develop..
Yes, I trade 3 systems (fully mechanical, computer issues buy/sell signals): 15min es swing, 15 min es and eurostoxx intraday, 1min nq scalp - 15m swing system es: july +29.25 pts / contract gross (31 trades) - 15m intraday es: july +30.50 pts / contract gross (38 trades) - 15m intraday eurostoxx: july +99 pts / contract gross (31 trades) - 1m scalp nq: +85.5 pts / contract gross (46 trades)
My system would have generated one trade today.. which was a buy at 966.00. which I took and happened to be the low.. I got in at 965.50 I followed a fairly close stop loss and got stopped out at 967.00 as you can see that would have been a very good trade had I followed my stop a little more loosely.. but with the downtrend intact I was nervous and wanted to protect as much profit as possible.. the other trade was the one I posted in the Euro.. I do not follow every signal and track the the result whether I had taken them or not.. but I will start starting today... In the past though.. when I look back on each day at the end of the day.. I can see that when I'm patient and follow my signals I am profitable..
Assuming that you've set goals for yourself, would you say that your system is meeting those goals? If so, perhaps you feel a need to revise your goals, which is why you think you can make better trades than your system. Either that or you're just bored with it and haven't reconciled yourself to the lack of excitement. If your rules are clear, you can always go over the last twenty trading days and see what would have been the result. However, if you allow discretion, this can muddy the water and you'll have to keep a running record, as you suggest above. If you're satisfied with your system but are bored with it, consider tweaking it a bit, or revising your goals, and taking on slightly more risk. If you do so, however, approach it as you would any change, with testing and practice.
Just thought I'd go back to this since I referred to your system. You say that you go against your system by making trades that are counter-trend, but your system is a counter-trend system. Perhaps this whole issue of trend/counter-trend and your comfort level with each needs to be resolved before you can get anywhere. In other words, what is it exactly that you want to accomplish and how do you want to go about doing it?