Should one sacrifice common sense for profitable system?

Discussion in 'Trading' started by cashmoney69, Aug 22, 2009.

  1. I've been working on a system thats based all off indicators, however many of the times it gives a signal, and im thinking the market has already bottomed or topped and its telling me to short or go long.

    I dont want to act impulsive and trade myself into a hole, but at the same time i need to have an unbias mindset and trade the rules that I have developed. Should I still take the trade if I have a strong opinion aginst it?

    have others had this problem?,what do you do in this situation?

    thanks
     
  2. As
    Voltaire said,"common sense is not so common."
     
  3. buy a car and still take your bicycle to work
     
  4. Quote from cashmoney69:

    I've been working on a system thats based all off indicators bad, however many of the times it gives a signal, and im thinking the market has already bottomed or topped and its telling me to short or go long. predicting tops and bottoms is what the 95% do
     
  5. Maybe ALL of your indicators are not ALL there.
     
  6. JackR

    JackR

    What do you mean by system? Does it run and give signals or is it you looking at very specific this and that's without need for interpretation? Both are systems.
    What has the system done? You do have records, don't you? You've got to follow your system once you think it's ready. A system, as far as I'm concerned, removes me from the loop, I just follow it. Obviously, if you've tested a system and it has never had more than X consecutive losers and suddenly you find yourself at 2X consecutive losers its time to re-evaluate the system or its current applicability. If you have a system designed to handle a down-biased market and the market is up-biased then you would not be using the system. But both system types have removed the need, if not the impulse, to respond to your gut feeling. Common sense is stopping day trading when you IP connection starts acting up.

    Jack
     
  7. common sense components:
    understanding of risk
    managing money


    system components
    anything you want
    even wooddies cci
     
  8. Should one sacrifice logics for profitable system? :)
     
  9. It can handle an up or down market with equal efficiency. It takes advantage of market momentum.

    The system is not yet automated.
     
  10. This is a common problem even if some won't admit they have it. I do.

    My answer is that 99% of the time I am wrong and the system is right.

    As far as common and uncommon sense, there are no such things. There is only sense.
     
    #10     Aug 23, 2009