Disliked{quote} Big A, When you say "system", are you referring to entries and exits, or merely entries? And does "system" include MM (position sizing and account risk management)? Also, when you say you can "make any system profitable", does this mean applying some discretion regarding the entries (e.g. if a trend following system, pick pairs that are most volatile or trending strongly; avoid consolidations, 'slow' sessions, trading into strong S/R 'headwind', etc), or are you saying that the edge lies in in exits (e.g. cutting losses quickly, and letting...Ignored
Good day to you, David,
when I say system I have in mind some set of rules based on which traders open and close positions aiming to have some profit. Of course, every aspect you have mentioned are important (when, what size position to open and close). However, what I have learned that discretion is the most important of them all. It also makes the difference between bots and human traders. This is also the the main reason why mechanical trading will never make such a profit as emotional one... And this is exactly the reason why human traders fail when apply mechanical trading as they have emotions after all and mechanical systems have a very slight edge - all the time they apply the same set of rules. This slight edge is ruined by human traders. One of the investments company where I live uses only bots for FX trading (people just make sure the bots are running). They have over 300 bots running at the same time and making 2 - 3 % per month. Now human traders can make hundreds and thousands % per year and also burn all their accounts as well So what I am trying to say that if we minimize the risk of the loss (MM) and concentrate on the most probable entries (discretion) we can make any system (set of rules) work for us.
A.
For my fallen angels.