Trading Software that actually gives a consistent return

Discussion in 'Trading Software' started by hmap1, Apr 25, 2002.

  1. hmap1


    Okay, I have read so many posts in the software reviews. Most of them are painful, as the average investor was "suckered" into spending their hard earned money. Other posters seem to have an agenda and seem to pump up a software. Lets face it folks, if any of these systems worked, we wouldn't hear about them. You see, there ARE systems that consistently make profits everyday and generate 1000 percent returns yearly, they are rare and we don't hear about them in the general public because they work! You see, hedge funds who HAVE systems like this are using them and scaling them to make money. Selling a software system to the public only means it doesn't work, so the last line of profit is to sell it to suckers.

    Now mind you. I realize some of these trading software systems are for data collection and analysis, and thats great. It leaves the actual signal and decisions up to the individual trader. Its the "black box" software packages that say its easy to make money that just have to go.

    So this thread is to see how many of these "systems" actually produce a consistent return on a yearly basis. This is without curvefitting and deviation from trading goals and strategies. Do they exsist to the individual investor?
  2. DT-waw


    :) What are you talking about?

    I have a system and it works well. I've tested many other ideas, DMI, TRIX, RSI, etc. and nothing is close to "my" system, which is based on old, very popular indicator!

    1000% a year? That is maybe possible with short-term systems.
    There's no magic here.
    I dont believe that some people have fantastic systems, they keep them secret, etc. - bullshit.

    If we have "easy" market ( like Nasdaq 1998 - 2000 ) its easier to make money. If there's a choppy, chaotic market - nothing works! Thats all.

  3. hmap1


    There are systems that work well in choppy markets, but you can usually get killed with the whipsaws on most systems, but these returns do exist, as do systems that are profitable everyday.
  4. rafat


    If Mr hmap1 you think that bad software go to public traders
    we will not find a software to use.
    if a trader loose he hangs his loosing on others
    wide range of traders make profit everyday using these softwares.No one complain
  5. hmap1


    Systems work for some people, but not everyone. One system may generally work for one person, but to others it may fail miserably. Systems that require trading knowledge from the trader are great and much more credible than the systems that prey on the uneducated investor. If making money was easy, everyone would be doing it. What is your average annual return over the past 10 years?
  6. alain


    Trading Systems are a huge story... a never ending story if you want.

    There are all different kinds of trading systems that work. Now the question is: what does it mean that a trading system works? Does that mean that a system creates constant monthly profits month after month, year after year? Does it mean if you have the right system you cannot fail?

    No, the main problem with people trading systems that don't understand the basics behind the systems or how the markets work is that they will not be able to trade a system over a long period of time successfully. Why? Because they don't know when it's time to adjust their attitude towards the market. When a trader follows strictly the rules of a system.. with pure discipline. There will be phases of long profit periods and there will be phases of long draw down periods. Now in theory this sounds easy... but when trading a system which you don't understand this can get you in trouble. Let's say you spend a few years developing and testing a system out of your own knowledge. For example you will know for what kinds of markets you have build the system and as a fact you will also be able to tell when certain conditions in the markets are changing. being able to adjust yourself to the changes is not to be learned from a book because this is no technique.. this is an art. In my point of view that's where a successful trader sets him apart from a regular trader. And that's where the long term success is created. Here I mean systemtraders!

    Let's take the example of the Indigo software... if someone that is trading with this software chooses the right indicator - which is like playing in the casino - then he might be successful for a certain amount of time. But someday this indicator setup that he doesn't understand nor see will not be successful anymore. Then his successful journey is over.

    I could tell the cleaning lady that when this indicator is on this level, this indicator crosses that one and the third indicator breaks through line X then she has to click the buy button. The same happens as above.

    So maybe you get my point. There are good systems but over time the systems are only as good as the observer of the systems.

    I have created a way how I can manage my systems when I get emotionally in trouble. I have created a way for myself to survive bad markets, a technique that allows me to adjust the systems to the markets and a way to optimize the diversification of the systems over time. But this is only a short description of my personal solution for this problem. This is actually very individual.

    But systems itself are not the key to success! And I think some of you are searching for this key.. the key lies in yourself. But this is another story.

  7. hmap1


    One of the biggest mistakes when trading a developed system is to deviate from your plan and curve-fit. Also, another mistake is to quit based on long draw-down periods. Your strategy should stay the course and not be influenced emotionally, especially by capital issues. No matter the outcome, stay the course and have large sample sizes for data collection, not a handful.
  8. nkhoi


    this system use to trade SPX, time: 15m, stoc: 15,3,3, sell when stoc reach 80 and turn down, buy when stoc less than 20 and go up, 8 points stop loss. close the trade at end of day or profit = 15 points.
  9. I am curious about the hedge funds with the 1000% returns. They must be pretty secretive.
  10. hmap1


    Yes, they are. What's the point of giving away secrets of something that works. They would only hurting themselves by diluting the system performance in the general public.
    #10     Apr 26, 2002