What I'm Struggling with - Execution of the Edge

Palindrome said:
I've spent about 7k hours building edges, and like them very much. Just having a little bit of trouble executing them.
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Either code and automate your edge.

Or if that no possible have a written trading plan defining every edge you have in detail.

Then execute your plan flawlessly. If you cant do that easily then you dont have confidence in your edge.

Its easier if you have a winning streak, but you will be tested during a long losing streak.

If it was emotionally easy to trade a long term profitable system through a multi month drawdown without jumping the system or abandoning it.
Then we would all be rich already.
 
To have an edge -> To know profitable IF -> THEN,
Is the hardest part of the puzzle. Now ...
Transform the plan into an habit.
Repeat thousands of time.
Internalize, Automate.
Correct mistakes.
& Repeat.

Repeat first in demo, Cause if unable in demo,
Then unable for real neither. Once Demo is Okay, turn it real.
Not saying it's portable .. Real's gonna be buggy, too.
Minimize vulnerability, Start small then see.
Correct, Repeat & Increase exposure.

No need to read any Psycho BS.
You don't become Zen by reading about Zen.
Learn to stand the heat by standing in the kitchen...
Not by reading books, before to fall asleep, in your comfortable bed.
 
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Try cutting your size down to a meaningless level. Then build from there. That's what it sounds like. What experience do you have with poker, blackjack, bridge, or other games of chance? An analytical background is not going to help you. Do you believe you can be rewarded for very little effort? I suggest a little Mark Douglas for starters. This probably seems to you the last thing you need, but all the analysis in the world will not help you make money by speculation. And that's what it is. I'd rather be a terrible analyst. . .
 
I would automate as I find the execution becomes much easier this way. If you experience periods of losses, you can always blame your computer for the problem.

Automation has its own problems (software bugs, data, or hardware), but it eliminates the problem of not pulling the trigger.

Start with a small account and build up your confidence along the way.
 
southall said:
If it was emotionally easy to trade a long term profitable system through a multi month drawdown without jumping the system or abandoning it. Then we would all be rich already.
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A good intraday system should make money every month, and a good swing trading system should not have multi-month drawdowns.
 
I will stick my neck out there and say I disagree with most everyone except Redneck and Handle123 here. I had the same problem as you and I THOUGHT I had an edge because some trades turned out perfect and others not so much. I was break even for about 18-20 months trying to figure out WTF was going on. The problem was I never did any BACKTESTING. How do you KNOW you have an edge if you don't backtest. Finding an edge has to be proven through hundreds to thousands of trades. Best not to pay your tuition to the market. Pay it on paper. Go back and trade your system in BULL, BEAR, and TRENDLEDS markets and see what you get. Set up your charts and computer to allow you to forward test your system back in 2007-2008 when you know the market was mostly consolidating/topping out. Then forward test again your system in mid 2008-2009. Then in 2012 to 2014. THEN you will have a better idea if your system "edge" is truly an edge. If you don't have confidence in it you will be afraid to follow it.

Think of it like a Police Officer and his gun. If a Police officer (you) didn't have 100% confidence his gun would fire he would be scared shit less to go out and fight the bad guy (the market). The gun has to work and he will be confident in it. The gun will not make the officer accurate (successful trade) that is up to you and practicing with your weapon (your system). With practice you will hone the accuracy. But first figure out does you gun even work everytime by back testing you system. You don't have to hit the bullseye everytime. But more often than not you should.

IN SUMMARY....BACKTEST. You will have your confidence.

My 0.02
 
southall said:
Do you really think there are retail day traders who make money every month, year after year?
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Absolutely. The monthly percentage yield wouldn't be consistent, but should be positive month to month. If not, then you're looking for action in the wrong place and time, and/or incapable of capturing the opportunities that present themselves. You don't have to make thousands of trades to do this. I average 1-2 trades per instrument each trading day.
 
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