Why do trading systems fail?

Discussion in 'Trading' started by hedron, Jul 21, 2014.

  1. hedron

    hedron

    So, in learning the AFL code, I'm testing out some simple systems. This one system works very well on WDC, although there is drawdown in the aftermath of 2000 and 2008, which is understandeble. I really wouldn't expect anything else from a long only system. But with EA, the system just breaks completely after 2002 or so.

    It's a trending following/catching system, so I can only guess that it is because EA is a symbol that has generally range traded its entire existence, while WDC has largely trended it's entire existence.

    Is this in line with what most people find?
     
  2. Bob111

    Bob111

    WDC and EA? Wtf they have in common? Do you seriously expecting to make a fortune of something like a MA crossover on some random stocks?
     
  3. hedron

    hedron

    Your mom.
     
  4. No trading system works 100% of the time, so instead of blindly following a trading system, you should try to understand what is causing a particular security to trend or stay range-bound. Try to understand the systemic forces (macro economics, sector and business cycle) that will affect the market, and the security specific factors (fundamentals and speculative interest/sentiment on the stock--hype) that will affect the security you're trading. A quick look on fundamentals tells me that EA revenues have stayed about the same and declined slightly for the past 3 yrs, while WDC has been steadily increasing revenues. The best trading system is the one you can adapt to different economic environments and trading situations--good luck finding that one.
     
  5. hedron

    hedron

    Ok, thanks. That confirms what I've read and what I've experienced.
     
  6. Bob111

    Bob111

    Go fuck yourself. Just stick your fucking attitude in your ass. That might help you big time with your fucking trading.
     
  7. Bob111

    Bob111

    Without looking into news for EA my first thought that it might be anything. An expensive game, that didn't sell well is enough after release. It's such lucrative business. Problem is that instead of going on yahoo and dig up the old news, compare charts, look up into their business this lazy faggot come here , asking stupid questions and start calling names, when I tried to steer him into right direction. Way to go !
    Been around for 12 years-this is first time I'm using those words.hey OP, the fuckface, choose your words carefully, or you won't get any help here
     
  8. Visaria

    Visaria

    +1

    bob, put the guy on ignore and forget about him. don't let him ruin your day.