Sticking to a system

Discussion in 'Journals' started by slumdog, Jul 14, 2013.

  1. slumdog

    slumdog

    "He did not stick to his own proved system. That's the trouble with most of them" -- Reminiscences of a Stock Operator.

    Its hard to just to stick to a trading plan when times get though. Its much easier to do when things are going well.

    I have developed a trading system.

    Assuming the system edge holds going forward it should make 30% a year with at most 10% draw downs. No draw down lasting more than 9 months.
    30% is an average yearly figure, annual returns are expected to fall somewhere in the 5 to 55% range.
    You cant predict before hand what the exact returns will be in any given year.

    80% profitable months, again on average and will vary in any given year, anywhere between 60 and 100% monthly win rate in any given 12 month period.

    Monthly p&l falls in the -5% to 10% range. With an average of 2.5% made every month.

    Im going to label the source code for the system ETJS1 (Elite trader journal system 1) under version control.

    Every time i change the production code i will mention it here.
    The idea is that i only change the system because i have found some genuine improvement during my research, not because the system is on a losing streak and making changes to it will make me feel better about trading it going forward.

    That is a bad habit i have been falling into recently.

    Assuming i stick to the plan i will report my monthly P&L % here too.