Your opinion matter a lot to me RN as you are far more experienced than myself. You basically say system is not relevant to profitability at all, correct? It isvery interesting as I seek for objective edges currently. If not the system, what provides the edge then in your view?
Hey CF First…, let’s ensure we’re talking the same language Trading plan…, aka strategy…, aka system Most traditionally call what it is we do/ how we do it…, one of the above I’ve a somewhat different take on this whole mess (trading plan word soup) I’ve created my approach / methodology…, then use a “trading plan” for each trade Trading plan; Signal / entry Stop loss / profit target Way of managing the trade My approach / methodology; Defines the who…, what.., where…, when…, how – of what it is – I will be doing…, using…, looking for (the obvious why = make money - duh) So I can then knowingly.., and consistently repeat myself - while trading ================= One’s system – (system defined in the traditional sense of a trading plan/ strategy)…, only need be reasonable There is.., and always will be – uncertainty Further..., I will never know…, or be able to foretell / predict mkt conditions All I will ever have…, is what is happening right here…, right now – that I can only then measure against / compare - to what has happened Never can I gauge / predict what will happen…, based on what has happened.., only measure and compare what is happening – to what has happened So..., to try and create a trading plan (in the traditional sense) for every possible mkt eventuality – is beyond futile imo Rather – it vital I know precisely how I will conduct myself (then consistently do so obviously) The system (traditional sense) – only need be reasonable The specifics of said system.... Are there not are more ways to trade successfully than I can ever count Bet your butt there are So the relevancy of any given system - to one being profitable - pretty darn minuscule Yes there is a legit argument that one's system must fit one's personality - I got it..., I wouldn't disagree - but I would also say this goes toward being reasonable as well Asking a monkey to swim like a dolphin = not reasonable ========= Further note on what is not reasonable for a system (traditional sense); Shorting – when price raging higher and shows no signs of slowing = not reasonable Entering – when price in a few cent range.., has been for the last however many hrs…, and shows no signs of a B/O = not reasonable Entering when price volatile and making equal / near equal wide ranging bars = not reasonable =============== As for seeking edges (Mark Douglas’s definition) Know precisely how you will conduct your self Know your signal(s) Create context (objectively… based on price) Find a signal within said context (or breaking out of it – if B/O one of your chosen signals) Trade it Mkt conditions must be conducive to trading Each trade must have a trade plan = low risk stop loss…, profit target.., way of managing When one works = exploit the crap out of it…, when one breaks down = get out…, possibly reverse WRR – consistently Btw…, the WRR (repeating consistently) – is an edge onto itself – and an objective one at that Anything unclear Sir - please say so RN
Boiled down to the essence--- money management is the key--- entries are only important to the extent that you enter because the market is moving a certain way and you hope it continues--- what i call random entries-- then manage the trade win lose or breakeven. This is if you dont have a structural edge or certain information and im not talking about past price/volume. Also self control is not an edge. surf
LMAO You are so full of shit - but then you're not a trader Anything to point others in the wrong direction - one can count you in MM is but 1 key - there are 5 RN
The definition of random is: proceeding, made, or occurring without definite aim, reason, or pattern. So if you trade, your entries and exits are not random because you have a definite aim and reason, namely making money by taking the best possible entry and exit. Money management is not the key, but only one of the keys. If your entries and exits are constantly completely wrong, your money mangement cannot save your trade. On the contrary if you enter and exit very good, this can save your trade. The importance of entries and exits is much bigger than the importance of money management. If I have to choose between a good entry/exit system or a good money management system, I go for the first one.
Well, I see your point-- but as far as the market is concerned-- its all random. You may think its not random, but you are entering a random system since if it wasn't it could not exist.
That's one great explanation of your view, thank you very much for putting efforts into writing that post. Did I understand it correctly: your point is consistency of applying certain rules is more important than rules themselves?