"Understand the concept of “by-and-large” and use approximations. Because our educational system is hung up on precision, the art of being good at approximations is insufficiently valued. This impedes conceptual thinking." Ray Dalio
tradewith60
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Disliked{image} "Understand the concept of “by-and-large” and use approximations. Because our educational system is hung up on precision, the art of being good at approximations is insufficiently valued. This impedes conceptual thinking." Ray DalioIgnored
Disliked{quote} Great quote. I was especially stricken because I was trained in a math and science background early. I have an "engineers" mind. It is the worst possible mind for trading. Trying to apply precision to an imprecise environment cost me years of time.Ignored
Disliked60, not meaning to hijack this excellent thread but just wanted to share this quote from Trend Following as I think it succinctly sums up the whole ethos and should be reflected on almost religiously every time we think we suddenly have some divine gift of seeing the future based on a few lagging indis “Big moves are always on the horizon if you are simply reacting to the market and not trying to predict it” ~ Michael CovelIgnored
DislikedQuite long drawdown, 7 weeks now. Results: Week 1 +4R Week 2 -14R Week 3 -2R Week 4 -3R Week 5 +3R Week 6 +4R Week 7 -7R Week 8 -10RIgnored
Disliked{quote} Your base instincts must have been screaming at you to bail!Ignored
DislikedTrade 227 -1R, 228 -1R, 229 +6R, 230 -1R, 231 +5R +8R this week. My expected target for this strategy is 50-100R a year, week 24 of the forward test and sitting at 30.5R. Two or three of these simple systems will make a very solid portfolio... it's not rocket science really. Results: Week 1 +4R Week 2 -14R Week 3 -2R Week 4 -3R Week 5 +3R Week 6 +4R Week 7 -7R Week 8 -10R Week 9 -4R Week 10 -13 Week 11 +21 Week 12 +6 Week 13 +14R Week 14 -3R Week 15 +15R Week 16 +19R Week 17 -6R Week 18 +7R Week 19 -5R Week 20 -7R Week 21 -0.5R Week 22 +11R Week...Ignored
Disliked{quote} Hi 60 just on the portfolio thing, would that not need monitoring or something to ensure the systems don’t conflict? It’s ok taking frequent small hits on one system but two or three might amplify this if all running on the same account?Ignored
“We have no control over outcomes, but we can control the process. Of course, outcomes matter, but by focusing our attention on process, we maximize our chances of good outcomes.”
—Michael J. Mauboussin
“The practical difference between . . . risk and uncertainty . . . is that in the former the distribution of the outcome in a group of instances is known . . . while in the case of uncertainty, this is not true . . . because the situation dealt with is in high degree unique.”
—Frank H. Knight
“The fundamental law of investing is the uncertainty of the future.”
—Peter Bernstein
Disliked{quote} Yes, what we see in forex is people either use no diversification, trading a single strategy, or they will use a single strategy over a selection of currency pairs. If you look at the investing world the idea is to have some investments that profit during bull markets and some that work in bear markets, or in the trend trading World covering as many sectors and markets as possible so as to catch any trends that occur. Ideally in forex what you need first is a simple system that shows these probabilities over large samples: 1. high probability...Ignored
Disliked{quote} Thats right and my broker does actually offer indices, US stocks and commodities but the issue is the minimum volume size is ten times that for forex so isn’t an optionIgnored
Disliked{quote} of course thinking more broadly we can diversify outside of trading, I own a 50% share in a restaurant, have 2 small online businesses, invest in growth dividend stocks, invest in Spanish property (bloody long term bet that one!) and trade forex... some cash savings wouldn't be a bad idea either and definitely paying off all debt is essential. One of the traders in my facebook group uses this strategy (variation of) and uses a mix of currencies and commodities to great effect.Ignored