This is a very straightforward question. U
I see people on the forum talking about fixing their “system”.
What exactly does this mean? Are they just talking about what charts the look at, checking fundamentals …
Can someone clear this up for me and if so outline what your system is.
Thanks
Mark
Personally I don’t like the term ‘system’ since it implies something fixed, and trading by it’s very nature has to have an element of discretion, I prefer the term’ strategy’, anyway that’s just a personal thing.
A system is what tells you when to trade, simple system would be, when the price reaches 1.4500 then I enter a long, anything like that.
So when they talk about fixing their system they might change it to when the price reaches 1.4500 I enter a short.
But what they really mean is, I’ve got no idea what I’m doing, I’m just making a loss all the time, so I’m just going to try something else. Good strategies stand the test of time and don’t need much tinkering if at all.
The following PDF gives a reasonable explanation of the elements that need to be considered when specifying a mechanical trading sytem, and it contains an example system (that probably no longer works, but thats not important)
I very much doubt anyones going to outline details of their system, they take an imense amount of work to design.
A system is a reason for you to enter and a reason for you to place your SL, and at times a reason for you to get out of a trade.
A profitable system means a reason that has an edge that gives you pips most of the time you enter.
The system all rules and strategies combined that you do with forex in general.
Its thought checklist I go through before placing any trades. Its different for everyone. Mine in a nutshell is Profit margin, Analysis, Rewards:Risk/MM, Confirm, execute.
You forget one crucial element which is how high a probability has this trade of working out.
Me personaly, i don’t have a system. Have three separted strategies and keep all trades in a diary. I don’t follow the rule of 1:3 ratio. I close positions when i think i must to and if it does not goes anywhere i just close and after closing it if it finally goes in my favor (belive me happens oftenly) i just let it be, i just don’n t care about that missing oportunity.
Regards.
hehehe i always find it difficult to answer " Whats the TP for your system?"
I close when I think its enough, its not going anywhere, its stalled, its eaten a magic mushroom. And your right. It will more often than not, finally hit the level that I was eyeing when I entered the trade.
I don’t have a system, I follow methodology that works specifically for me.