Absolutely spot on. If expectancy is negative, no money management or discipline will help. Think of roulette, no discipline and MM will help there in a long run. (one guy managed to crack it, but it was due to technological reason, if interested read the book "13 against the bank"). I would even add more, once model is found, automate. Then all emotions are gone.
qlai, I LOVE THAT quote. Damnnnnn, I love that. That's the best analogy, I ever heard as it relates to trading. This is the reason I strongly believe "NOW", building my trading skills and learning the charts and price behavior, is my number #1 challenge. That psychology stuff is for later on.
RedDuke, Thank you. I agree with you fully. I look back at all the money I loss trading in the beginning and buying this trading system and joining this chat room and follow this and that person trades, I recall many traders in the paid chat room asking the trading guru "I am on a 4 losing streak", and the guru would say "just stay discipline and control your emotions"..........many of times I would think to myself "How do I know what I am doing is working". I fully know better now.
Yes, nothing at all wrong with it now. The one thing automated trading taught me when I was programming and clicking backtest many times was: The bigger the sample size, the better the equity curve. It's about the number of trades, loss come and go.
Backtesting is hard. One of the ways to design and test in the middle of the sample. And then run it for the whole sample, thus it gives you some forward test.