Question to Elite Traders

[easymon1]

one setup is all that is really needed

Dam refressing to see this posted! Coundn't agree more. I loves me some hammers at support and resistance. Mumms the word! lol

 

[Blaze]

Are you using a Purely Systematic method to determine your entry stop target exit prices and position sizes? eg. "written" instructions that are executed for each and every occurance of requirements for a "Trade". They can be written for digital execution if you can, or they can be written with a pencil on paper, either way, can your system be reduced to writing?

Yes. It is a set of rules. I haven't automated anything because I am a retail trader with no background in programming/coding. I am a discretionary trader and I execute trades manually.

 

[Blaze]

I'm glad some of the first responses talk about back and forward testing. It's absolutely critical. I would only add that you should spend the painstaking hours verifying the back testing results trade by trade. It sucks, and it takes a lot of time, but you need every bit of confidence you can find to bid or offer without any hesitation. Trade Ideas is notorious for overstating back test results. Consider yourself an unbiased tight assed auditor and verify them. A 90% win rate on TI is more like 60%. 99% is more like 75%. I've said it before, but there is an empty bottle of Cabernet on my desk as a reminder of how many times my friends were out partying, and I was at my desk verifying test results on a Saturday night. Good trading, my friend.

I decided to forward test only because the market is evolving rapidly. Thank you.

 

[Blaze]

50 trades is not a large enough sample. I once, backtested an extremely profitable strategy, I though, I went thru 118 trades. Thought it must work somehow. With the huge slippage in prices in actual trading, that was enough to render the trading strategy, a huge failure. You probably, need atleast, 500 trades.

This is part of the reason why I am skeptical about trading a shorter time frame that I'm used to. I can't truly tell whether it is worth trading after the costs of doing business and the associated human errors. Trading the 4hr instead of the daily means more noise, 6X the trading fees, higher probability of errors in execution etc. I'm currently debating on whether it is worth the hustle.

 

[easymon1]

It is a set of rules.

How often does your set of rules change?
When was the last time they changed?
Are they Written down?
Are they set in stone?
You seek funding, no?
Do you have a signed, dated, certified copy copy of your rules and performance record set in stone?
Discresionary can mean a lot of things to a lot of people, including following your rules as written, or not, at your discression.
Some sources of cashola might care absent a rock solid track record with references from some of your longest customers.

What would you say belongs in a solid trading plan?

1. A strategy with an edge.

BTW, This Is Good Stuff, Thanks.

 

[Blaze]

How often does your set of rules change? Rarely
When was the last time they changed? A few months ago
Are they Written down? Yes. In a word document
Are they set in stone? Largely Yes
You seek funding, no? No. I might at some point in future. I'm the typical retail trader. I would like to build a track record first .
Do you have a signed, dated, certified copy copy of your rules and performance record set in stone? No. As I said before, I'm a typical retail guy trading at home without professional experience.
Discresionary can mean a lot of things to a lot of people, including following your rules as written, or not, at your discression.
Some sources of cashola might care absent a rock solid track record with references from some of your longest customers.

What would you say belongs in a solid trading plan?

BTW, This Is Good Stuff, Thanks.

There are your answers.

 

[easymon1]

Why not get a quick and dirty read on what the yield was for your trading plan / System.
Substitute nothing but the timeframe and keep all else identical.
Pick a random date out of a hat.
Apply your Systematic entry stop target exit criteria position sizing to the timeframe of interest to a dozen trades.
Far from accurate, yet much quicker than trying it live.
If it sucks, you will likely notice that within a dozen and spare yourself the time involved with live execution of anything near a significant number of trades.
Just mark up a chart for timeframe of interest starting at the date and time you pulled from a hat.

2 million. It's out there waiting for ya!

 

[Blaze]

Why not get a quick and dirty read on what the yield was for your trading plan / System.
Substitute nothing but the timeframe and keep all else identical.
Pick a random date out of a hat.
Apply your Systematic entry stop target exit criteria position sizing to the timeframe of interest to a dozen trades.
Far from accurate, yet much quicker than trying it live.
If it sucks, you will likely notice that within a dozen and spare yourself the time involved with live execution of anything near a significant number of trades.
Just mark up a chart for timeframe of interest starting at the date and time you pulled from a hat.

2 million. It's out there waiting for ya!

It's not that straightforward. First, I would have to backtest at least 10 pre-selected assets - not one. The pre-selection process makes backtesting a total nightmare. There is no way of knowing which 10 assets I would have chosen to trade at that point in time, in a sea of similar assets. Unless I get a time machine, it is easier to just forward-test the system with realtime data.

About the 2M, I'm not really qualified to take in investors money at the moment or in the near future. Too big of a responsibility for now.

 

[deaddog]

Take a look at the trades you have executed this month/year.
Knock the time frame down. Did you get the same setups. Would you have hit your target or your stop?

 

[easymon1]

It's not that straightforward. First, I would have to backtest at least 10 pre-selected assets - not one. The pre-selection process makes backtesting a total nightmare. There is no way of knowing which 10 assets I would have chosen to trade at that point in time, in a sea of similar assets. Unless I get a time machine, it is easier to just forward-test the system with realtime data.

About the 2M, I'm not really qualified to take in investors money at the moment or in the near future. Too big of a responsibility for now.

So No Single of the products, that you trade more than the rest, is worth even a quick and dirty look at ten of? Puh Leeze, get up off ya ass or stop acting curious. lol.

about the 2M, i musta had you cornfuzed with a different post asking about gaining funding.
my bad, carry on.