why can't I follow my system?

Discussion in 'Psychology' started by ymtrader, Jun 20, 2006.

  1. ymtrader


    Hello everyone,

    I've been a long time visitor to elitetrader but have never started my own thread 'til now.

    I have been trading ym & es futures for 4 years with some good months and some bad months, trying to learn as I go. I developed a system based on market observation and probabilities at the start of my 4 years in the market, and have since worked on back testing and forward testing it throughout the years.

    Everything I have tested, shows that it makes money. I have not changed the system for 2 years, so the last 2 years I have essentially been forward testing what was previously only a backtested positive expectancy system.

    The last 2 years it has continued to make money.

    The problem is that I don't take every trade! It's killing my profitability. I know there are hundreds of threads on this board from people in the same boat as I, and maybe I just need to rant a bit, but I'm looking for any advice or processes that can help me trade one day at a time so I can realize my expectations.

    A little about my system: I trade the ES, I know my login name is ymtrader, I used to trade only ym :) . And I usually average 12 contracts.

    ~82% profitable trades
    average win ~$2000
    average loss ~$4800
    max drawdown ~25%

    Over time my system does extremely well, it's the day to day fluctuations that are hard to deal with...it's our old friends fear and greed that befuddle me.

    As you can see the my win/loss ration is only around .42, but this is how my system has been designed, but I also think that is why it is hard for me to take every trade.

    Thanks for listening to my rants...

    ym(es)trader :)
  2. I feel like this is gambling...just a feeling...sorry carry on...
  3. ecritt


    Do you skip new trades only, or also fail to honor stops and get out of losing trades?
  4. comfut


  5. Post your system on Seykotas site if you have such an issue. They will tell you to take the trades and track them too and track your deviation from them, and give you encouragement to stick to the trades.

    He sounds too much like scientology for me, but it might work for you.
  6. in56


    Try reading "Trading in the Zone" by Mark Douglas. Also you might be risking too much on your trades, reduce position size and go from there.
  7. If it is truely a system, it may help you to automate the execution of your orders. Then it's not really up to you what orders go in, it's up to your program.
  8. ymtrader


    Hi Guys,

    Thx for the quick feedback...

    I only fail to take trades, I never fail to take my stop b/c once I take a trade, my system immediately calculates and creates the OCO profit target/stop loss trades.

    Sometimes when I look at my W/L ratio, I too think I may be gambling, but when I look at the probabilities and statistics that back up my system, I believe it is sound. I just get to hung up on looking at my balance everyday as opposed to being a disciplined trader who is happy that he followed his system.

    I'll check out the site you guys mentioned.

    Oh, one other thing, I have looked at having a firm trade this thing for me, it's just that their commissions are so damned high. I currently trade through tradestation and their rates are pretty low. Does anyone know of a good firm w/ low rates that would trade this for me?

    Thanks everyone!
  9. oh my gawd..your inbox will be filled....

  10. ymtrader


    :) oops! :cool:
    #10     Jun 20, 2006