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- Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible.
- My original system was very simple with hard-and-fast rules that didn’t allow for any deviations. I found it
difficult to stay with the system while disregarding my own feelings. I kept jumping on and off—often at just the wrong time. I thought I knew better than the system.
- Also, it seemed a waste of my intellect and MIT education to just sit there and not try to figure out the markets.
- Eventually, as I became more confident of trading with the trend, and more able to ignore the news, I became more comfortable with the approach. Also, as I continued to incorporate more “expert trader rules,” my system became more compatible with my trading style.
- As I keep trading and learning, my system (that is the mechanical computer version of what I do) keeps evolving.
- Over time, I have become more mechanical, since (1) I have become more trusting of trend trading, and (2)
my mechanical programs have factored in more and more “tricks of the trade.” I still go through periods of thinking I can outperform my own system, but such excursions are often self-correcting through the process of losing money.
- I don’t think traders can follow rules for very long unless they reflect their own trading style. Eventually, a breaking point is reached and the trader has to quit or change, or find a new set of rules he can follow. This seems to be part of the process of evolution and growth of a trader.
- A trading system is an agreement you make between yourself and the markets.