There are only 2 parts to any system - Aussie Stock Forums

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  1. #1

    Default There are only 2 parts to any system

    1. The actual system
    2. You being systematic

  2. #2

    Default Re: There are only 2 parts to any system

    This is really a non event statement.
    The system it self is a whole not a part.
    If you follow a system your actions in trading the system are systematic.

  3. #3
    Mmmmmm 2nd breakfast Knobby22's Avatar
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    Oct 2004

    Default Re: There are only 2 parts to any system

    There are only 10 types of people in the world
    - those who understand binary and those who do not.

  4. #4

    Default Re: There are only 2 parts to any system

    I used to share your sentiments until I attended a trading seminar and learnt a particular trading system There were at least 30 of us in attendance. The teacher was an extremely successful private trader. This course was not cheap. Talking to at least a dozen of those that had begun trading months later I discovered that they and I had all 'altered' the system. It didnt matter that most everyone lacked experience in a very volatile area. In effect no one was making money because no one was being obedient. I even remember the teacher once confiding to a downhearted student that 'most people cant follow instructions 'I can now say that those handful that are following the system are making money.

    True story

  5. #5

    Default Re: There are only 2 parts to any system

    I have no doubt its a true story.

    Why did you and they alter the system in the first place???
    I'll bet it had a drawdown.Cant think of any other reason---you wouldnt attempt to alter a winning method? or would you?

    Provided positive expectancy is still maintained with alteration then any system can be tweeked.

    There are flaws in systems that when tweeked (I mean tweeked not dramatically altered--eg Variables not operators),go from profit to loss.

    I think anyone who doesnt UNDERSTAND the mechanics of any system--how it calculates positive expectancy--has little chance of being able to blindly(as thats what they have to do if they dont know what makes the system tick--IE Black box) follow a system particularly through a period of drawdown.
    Most sold systems wont turn a profit unless leveraged with CFD's

    I know of 5 tweeked variations of Techtrader all returning around the same as the master.

    The key to success in systems trading is understanding the system you are trading----so you have the confidence and know the boundaries of the system.IE,maximum Peak to Valley drawdown--Initial Drawdown----Maximum consecutive losers---Win/loss ratio---Reward to Risk Ratio---without this information your truely trading blindly.

  6. #6

    Default Re: There are only 2 parts to any system

    Why do you think they were advertising for psychopaths? Those guys probably had the system they themselves developed knowing absolutely everything about it but they couldnt depend on themselves to pull the trigger everytime win or lose. And yes drawdowns top of the list but getting in too early without confirmation, getting in late, getting greedy, buying the wrong option series, Not taking high probability trades when presented. When most of us discovered we couldnt bypass losses and dominate the market we allowed this system to work for us.


  7. #7

    Default Re: There are only 2 parts to any system

    I am very sorry if I offended you in anyway Tech A that was certainly not my intention. Yes, and you are absolutely right about the need to know how your system works to give you enough confidence to follow through is certainly the most important thing. In fact papertrading to profitability was a major part of that system. There were lots of us profitable paper traders. Also I do not think it is necessary to know everything about somebody elses system if they are 80 to 90% profitable as long as you do your part and have an automatic stop loss in place to allow for human frailty and ego. To ignore the need for a stop loss, now thats trading blind. That in itself is a system especially if your definition of a system is similar to mine, 'save yourself time energy and money' What is usually left unspoken in all sound systems is that they require you to tighten your play, get over your grief and get backup as fast as you can when they do occasionally fail.

    My apologies

  8. #8

    Default Re: There are only 2 parts to any system

    Where did you get the idea that you had offended me?

    No need for apologies.

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