That “One Trade”…that changed your Life F-o-r-e-v-e-r

Redneck said:
It appears you're attempting to lay off blame onto the strategy

As opposed to the trader - who implements said system..., who maintains sole control of when, where, how..., whatever said system - is implemented

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Give me a so called random system...., even a so called losing random system - $5.00 bucks says I can make it consistently profitable

Only stipulation - the system must be complete (nothing left for me to interpret/ create on the fly)

Big words for a dumbass redneck - if I do say so

RN
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Your opinion matter a lot to me RN as you are far more experienced than myself.

You basically say system is not relevant to profitability at all, correct?

It isvery interesting as I seek for objective edges currently. If not the system, what provides the edge then in your view?
 
cornix said:
Your opinion matter a lot to me RN as you are far more experienced than myself.

You basically say system is not relevant to profitability at all, correct?

It isvery interesting as I seek for objective edges currently. If not the system, what provides the edge then in your view?
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Hey CF

First…, let’s ensure we’re talking the same language


Trading plan…, aka strategy…, aka system

Most traditionally call what it is we do/ how we do it…, one of the above


I’ve a somewhat different take on this whole mess (trading plan word soup)

I’ve created my approach / methodology…, then use a “trading plan” for each trade


Trading plan;

Signal / entry

Stop loss / profit target

Way of managing the trade


My approach / methodology;

Defines the who…, what.., where…, when…, how – of what it is – I will be doing…, using…, looking for (the obvious why = make money - duh)

So I can then knowingly.., and consistently repeat myself - while trading

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One’s system – (system defined in the traditional sense of a trading plan/ strategy)…, only need be reasonable

There is.., and always will be – uncertainty

Further..., I will never know…, or be able to foretell / predict mkt conditions

All I will ever have…, is what is happening right here…, right now – that I can only then measure against / compare - to what has happened

Never can I gauge / predict what will happen…, based on what has happened.., only measure and compare what is happening – to what has happened


So..., to try and create a trading plan (in the traditional sense) for every possible mkt eventuality – is beyond futile imo


Rather – it vital I know precisely how I will conduct myself (then consistently do so obviously)

The system (traditional sense) – only need be reasonable

The specifics of said system....

Are there not are more ways to trade successfully than I can ever count

Bet your butt there are


So the relevancy of any given system - to one being profitable - pretty darn minuscule


Yes there is a legit argument that one's system must fit one's personality - I got it..., I wouldn't disagree - but I would also say this goes toward being reasonable as well

Asking a monkey to swim like a dolphin = not reasonable


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Further note on what is not reasonable for a system (traditional sense);

Shorting – when price raging higher and shows no signs of slowing = not reasonable

Entering – when price in a few cent range.., has been for the last however many hrs…, and shows no signs of a B/O = not reasonable

Entering when price volatile and making equal / near equal wide ranging bars = not reasonable


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As for seeking edges (Mark Douglas’s definition)

Know precisely how you will conduct your self

Know your signal(s)

Create context (objectively… based on price)

Find a signal within said context (or breaking out of it – if B/O one of your chosen signals)

Trade it


Mkt conditions must be conducive to trading

Each trade must have a trade plan = low risk stop loss…, profit target.., way of managing

When one works = exploit the crap out of it…, when one breaks down = get out…, possibly reverse

WRR – consistently


Btw…, the WRR (repeating consistently) – is an edge onto itself – and an objective one at that



Anything unclear Sir - please say so :)


RN
 
Boiled down to the essence--- money management is the key--- entries are only important to the extent that you enter because the market is moving a certain way and you hope it continues--- what i call random entries-- then manage the trade win lose or breakeven.



This is if you dont have a structural edge or certain information and im not talking about past price/volume. Also self control is not an edge. surf
 
LMAO

You are so full of shit - but then you're not a trader

Anything to point others in the wrong direction - one can count you in

MM is but 1 key - there are 5

RN
 
marketsurfer said:
Boiled down to the essence--- money management is the key--- entries are only important to the extent that you enter because the market is moving a certain way and you hope it continues--- what i call random entries-- then manage the trade win lose or breakeven.
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The definition of random is: proceeding, made, or occurring without definite aim, reason, or pattern.

So if you trade, your entries and exits are not random because you have a definite aim and reason, namely making money by taking the best possible entry and exit.
Money management is not the key, but only one of the keys. If your entries and exits are constantly completely wrong, your money mangement cannot save your trade. On the contrary if you enter and exit very good, this can save your trade. The importance of entries and exits is much bigger than the importance of money management.
If I have to choose between a good entry/exit system or a good money management system, I go for the first one.
 
i am nobody said:
The definition of random is: proceeding, made, or occurring without definite aim, reason, or pattern.

So if you trade, your entries and exits are not random because you have a definite aim and reason, namely making money by taking the best possible entry and exit.
Money management is not the key, but only one of the keys. If your entries and exits are constantly completely wrong, your money mangement cannot save your trade. On the contrary if you enter and exit very good, this can save your trade. The importance of entries and exits is much bigger than the importance of money management.
If I have to choose between a good entry/exit system or a good money management system, I go for the first one.
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Well, I see your point-- but as far as the market is concerned-- its all random. You may think its not random, but you are entering a random system since if it wasn't it could not exist.
 
Redneck said:
Anything unclear Sir - please say so :)


RN
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That's one great explanation of your view, thank you very much for putting efforts into writing that post.

Did I understand it correctly: your point is consistency of applying certain rules is more important than rules themselves?
 
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