I started, as many others with discretionary methods, however ended up in systematic
trading, and that`s where I am for the last (profitable) 5 years.
Trading systems is a whole large field of science (math, statistics) and its impossible to
describe all aspects of that in the "Forum"`s post, but maybe these few observations be
helpful:
1. It is not easy to find reliable cyclical pattern in the markets. So If You want to do this
for living diversification is a key - diversify strategies as well as the markets.
2. I believe that most important in trading is losses management. System analysis can
help You with that. This, combining with proper bet sizing (MM) is a key to consistent
growth.
3. On psychological side systematic trading is sometimes tough. Very often I get signals
which I find in conflict to AT, however - discipline in system trading is a key, so I have
to follow the signals. Then if I look at big picture, the results speak by themselves.
4. Some time ago âFuturesâ magazine hosted few top traders. I especially like M.
Muggiero`s opinion from that meeting: âthe trader who can make without computer is
like a guy who can throw a 100 miles per hour fast ball... that`s God given gift... but
there`s a small percentage of people who can (do that)...â I think that explains the
difference.
5. The system can be simple, but managing funds and recognizing system`s efficiency
requires professional knowledge and very well done analysis, which is the common
problem of most system traders.
