Developing your methods..

[JJL3142]

Hi,

I just wanted to find out what the general consenus to "developing your methods" are - rather than following a trading system. The general consenus seems to be - dont follow other peoples system but develop your own.

What would be the way to develop your methods (from reading books to developing your strategy plan) ..

THanks

Pervaz

 

[Two Bars]

1. Keep an open mind
2. If 95% lose, you dont wanna do what they're doing.

 

[SOCRATES]

1. Keep an open mind
2. If 95% lose, you dont wanna do what they're doing.

Yes, that is right. And in addition you ought to do the opposite to what everyone else is doing.
The mission is to find out what it is they are doing, and then become a contrarian, or, even better, just do what they don't or will not do.

 

[Two Bars]

I agree Socrates. It took me ages to figure that one out, but I got there eventually. I do the opposite to what the 95% are doing.

 

[Salty Gibbon]

The only way to go is to develop your own way of trading.

If you follow a "black box" trading system you will never understand just why you are doing what you are doing.

By developing your own system you will learn a lot and ( to use a well known footballers' cliche ) at the end of the day ( if there is such a thing in trading ) you will understand why you are entering, exiting, placing stops etc at the various price levels. You will also make all the mistakes in the book and more but it is a very valuable learning experience which I personally am still undergoing.

Throw away vendor trading systems and do your own thing - don't worry about this 95% failure thing - it's pretty easy to be in the top 5% in anything if you really want to be.

 

[SOCRATES]

The only way to go is to develop your own way of trading.

If you follow a "black box" trading system you will never understand just why you are doing what you are doing.

By developing your own system you will learn a lot and ( to use a well known footballers' cliche ) at the end of the day ( if there is such a thing in trading ) you will understand why you are entering, exiting, placing stops etc at the various price levels. You will also make all the mistakes in the book and more but it is a very valuable learning experience which I personally am still undergoing.

Throw away vendor trading systems and do your own thing - don't worry about this 95% failure thing - it's pretty easy to be in the top 5% in anything if you really want to be.

Thaty is perfectly correct.

 

[SOCRATES]

I agree Socrates. It took me ages to figure that one out, but I got there eventually. I do the opposite to what the 95% are doing.

Yes Two Bars, and it takes a long time and a lot of effort doesn' t it ? Well done !
And now the latest buzz is the idea of a fully automatic trading system that is able to
select the correct indicator, test it, act upon it, calculate the stop, execute the trade,
and exit when the criteria change, and then to wait for another opprtunity to present itself
and for it to repeat the excercise, all of this with parameters that can be changed, and with
manual override, amazingly clever. A trading system linked to an electronic execution system.