Perhaps the question should be, why 95% of systems fail? The thread started implies that the trader is the cause of losses...
Markets are damn difficult to beat, the odds are against you, this being a negative sum game and all. Good disipline and money management will slow down traders demise, but odds are odds and unless there is a statistical edge, trader will loose eventually.
Anyone wishing to proove me wrong, could propose a 100% mechanical system, with Stop Loss == Take profit, which would give positive returns. There are a lot of systems floating around the forums, all have been tuned and tweaked hundreds of times... we need something constant to act as a benchmark. Alternative to the Stop Loss=Takeprofit would be to take profit after "X" number of bars. This would proove nicely the statistical advantage.
A lot of talk and theories are present, but little hard evidence... If some kind soul could provides us with such system, at least we will have something solid to discuss.
I for one, don't believe in a 95% system. Market is simply too unpredictable. News, to me, present most obvious high probability events, but even they can fail. I'm not sure how something technical could fair better.
Best regards,
Vlad
Markets are damn difficult to beat, the odds are against you, this being a negative sum game and all. Good disipline and money management will slow down traders demise, but odds are odds and unless there is a statistical edge, trader will loose eventually.
Anyone wishing to proove me wrong, could propose a 100% mechanical system, with Stop Loss == Take profit, which would give positive returns. There are a lot of systems floating around the forums, all have been tuned and tweaked hundreds of times... we need something constant to act as a benchmark. Alternative to the Stop Loss=Takeprofit would be to take profit after "X" number of bars. This would proove nicely the statistical advantage.
A lot of talk and theories are present, but little hard evidence... If some kind soul could provides us with such system, at least we will have something solid to discuss.
I for one, don't believe in a 95% system. Market is simply too unpredictable. News, to me, present most obvious high probability events, but even they can fail. I'm not sure how something technical could fair better.
Best regards,
Vlad