How Often Do You Change Your System

[dbphoenix]

Quote from PoundTheRock:


You do not want to reinforce your ego by cheating on a trade and having it work in your favor, i.e., thinking you have acquired the ability to filter the bad signals. Bad bad bad. Because when the best signal comes along, you are toast.

PTR

Excellent advice.

 

[Breakout]

Here is a link to some interviews by professional system builders. Those questions are probably addressed. This along with feed back from the guys here should help.

Good Luck! System Builder Interviews

 

[CPTrader]

Quote from PoundTheRock:



I have a "production" system and its counterpart "test bed" system. Changes that make it through the test bed are rare and are only incorporated into production after extensive backtesting.

Whatever you do, do not get into the habit of constantly tweaking the system - you will end up questioning your signals and missing moves because you did not think the system was giving you the "right" trade at the time. A system in such a state is not really a system, no? Learn to live with it - no system is perfect and you will outguess at the worst possible times.

You do not want to reinforce your ego by cheating on a trade and having it work in your favor, i.e., thinking you have acquired the ability to filter the bad signals. Bad bad bad. Because when the best signal comes along, you are toast.

PTR

Quote from dbphoenix:



Excellent advice.

I emphatically concur! This is one of those gems on EliteTrader. Thanks dbphoenix.

 

[onewaypockets]

Quote from PoundTheRock:



I have a "production" system and its counterpart "test bed" system. Changes that make it through the test bed are rare and are only incorporated into production after extensive backtesting.

Whatever you do, do not get into the habit of constantly tweaking the system - you will end up questioning your signals and missing moves because you did not think the system was giving you the "right" trade at the time. A system in such a state is not really a system, no? Learn to live with it - no system is perfect and you will outguess at the worst possible times.

You do not want to reinforce your ego by cheating on a trade and having it work in your favor, i.e., thinking you have acquired the ability to filter the bad signals. Bad bad bad. Because when the best signal comes along, you are toast.

PTR

These words certainly ring true to me. I am guilty of trying to introduce elements from my "test bed" too quickly in the past. I have learned now also to have my seperate "test bed" and only gradually evolve my system that is now making a profit.

Since my system of three years has evolved to the point where I am comfortable with it (what I trade and the time frame) I dont see it changing it wholesale. But many of the rules I have can be slowly changed over time with lifes experience.

 

[dbphoenix]

Quote from CPTrader:

I emphatically concur! This is one of those gems on EliteTrader. Thanks dbphoenix.

Actually, that should be "thanks, PoundThe Rock". But I hope his post gets noticed. There's a fine line between tweaking and curve-fitting, and an even finer one between tweaking and refining. It should come as no surprise that a system will have to undergo at least some modification when put into practice. But it's very easy to wander off down some path or other that looks to hold more profit potential, then get so lost that one forgets what the underlying strategy is.

 

[Breakout]

This is also a good site for system builders to learn.

Hope this helps... System Traders Club