Discipline, faith and confidence
Knowing we were in for a quiet week with very little news plus with the thanksgiving holiday, I was dubious to the performance this week and so kept a strict eye on the proceedings....
As the weeks chart shows, discipline to the same strat all the time pays off (until your worst case scenario appears). Markets change and behaviour changes in all markets and consequently, how could a strat be designed to work week in and week out without a hitch? The preverbial 'holy grail'? It can't and it can. It depends on your state of mind really. The more you read the more you can be confused by the 2 contradicting possibilities but it can work out.
As DC said (highlighted in prior post), the holy grail is something that works in all conditions and produces more than it loses with the minimum drawdowns. It is also very simple that even someone with the least market knowledge can produce. I know there are plenty here who would disagree it is and can be that easy, but then you have to take a step back...
I have recently done just so and my whole frame of mind when trading (and in life) changed. Taking trading as it is the relevant one.... So many contradicting thoughts and posts in boards over the net can leave you stuck (well it did me anyway). for example, 'indicators are lagging'. Of course they are as they are an equation based on price events that have happened, BUT, what is 10 pips late if your consistent win rate % is much higher with them? I used to hate being late in trades and missing big moves and taking losses.
After taking a look from a distance I realised that working off a monthly average profit, I had my 'holy grail' allready. I was late in trades, I did miss out and I do take losses, so what! we constantly read about 'there is no holy grail' yet don't use indicators as they are lagging but don't try to pick tops and bottoms. I can look through the weekly currency threads and see 90% of my trades are in before price based trades (ie breakouts) so indicators aren't so bad, and every time I try to get in pre signal, I'm invaruably wrong!
Anyhow, my point being, and the one thing that has turned me from just consistent to consistent and confident is seeing things in a different light and accepting everything that has been thrown at me during the week and KNOWING that, at 5pm on Friday, after losses (business expenses), missing out on pips becuase my signals lag (!!) and missing some good moves I can still make consistent money. Additionally, the fear of the strat backfiring has gne completely, swings and roundabouts... sometimes I make 100 pips, sometimes 300 in a week but never less...
Waffling over, I have learnt alot over the last 4 months and now it just flows like seeing the matrix through the numbers, I don't even think and I know it always works WHATEVER happens. Why? Because the holy grail does exist if you have confidence, discipline and faith. Whether with indicators and support and resistance or any method. Cover every variable and streamline every angle (tightest stops, best averages etc) and happy days. Proof, faith and discipline.
In a nutshell, I think (for me anyhow), after I stopped looking for the holy grail to make Warren buffett jealous, accepted that I don't need to be in for every pip and even with the indicators, I can lag and still make money, and accept the losses and stick 2000% with the discipline of the strat devised, I realised I might never make a million a year, but, I can make plenty more than I will in any job and have the freedom desired. I have nothing more to prove and I can earn a (very healthy) living against the grain of all I've ever read and with the least strain, and that, was the whole point....! From here on in and forver more (or until we become one single world currency!) all I need do is press a button when X,Y or Z happens. Even with this past week (one of the worst in the last 10) I am still muchus happy!
Sometimes I think we need to step back and think about our goals and sometimes accept, a decent wage doing something you enjoy on your own basis, is all thats needed and once consistency is achieved, we should just step back, do it, enjoy it, accept it, and live!
Its taken about 3 years but its worth it now!
Good trading all
PS. Sorry, all a bit deep for a Friday morning I know!!!!
PPS. Apologies, I just realised I can't add and the cross reference added to 2 different figures so changed it in 2nd chart.