Hello everyone!
I have been gone from this forum for quite some years. Very busy with work and at the same time I needed to take a break from this quest or else risk getting burned out and abandoning it completely.
As I get back into the swing of things, I have realized that the only immediate way that I can use in order to take my personal emotion out of trading is thru automated trading. This may sound crazy to some but I am just going to give it a go.
The subject of this thread is not to discuss a system in and of itself, but rather the aspects of creating one. Particularly, one related to an old article I read way back in the day. In it, some random contributor commented on the options available to anyone looking for a successful system. He wrote: "If you have a system and it turns out that when backtesting it, it is a complete and steady looser, then simply turn it on its back. When it gives a sell signal, buy and when it gives you a buy signal, sell"
Sounds simple at first but I have tried that over the last couple of weeks and I don't seem to come up with that same result. Provided again that we are talking about a fully automated system.
I know that without the logic behind it, not much can be said about such a system. I am here proposing we discussed, not the system itself, but the ins and out of the main proposition, turning a system around with the same signals, but in opposite direction. I'll start with an example
Spreads: When you test a system and it happens to be a steady looser, it is easy to imagine flipping the signals. However, for every trade you make, there is a loss incurred on the spread, that adds to the apparent ability of the system to lose money. When you flip the signals around, that spread still runs against you.
What other things play a role, in your opinion?
Thanks
I have been gone from this forum for quite some years. Very busy with work and at the same time I needed to take a break from this quest or else risk getting burned out and abandoning it completely.
As I get back into the swing of things, I have realized that the only immediate way that I can use in order to take my personal emotion out of trading is thru automated trading. This may sound crazy to some but I am just going to give it a go.
The subject of this thread is not to discuss a system in and of itself, but rather the aspects of creating one. Particularly, one related to an old article I read way back in the day. In it, some random contributor commented on the options available to anyone looking for a successful system. He wrote: "If you have a system and it turns out that when backtesting it, it is a complete and steady looser, then simply turn it on its back. When it gives a sell signal, buy and when it gives you a buy signal, sell"
Sounds simple at first but I have tried that over the last couple of weeks and I don't seem to come up with that same result. Provided again that we are talking about a fully automated system.
I know that without the logic behind it, not much can be said about such a system. I am here proposing we discussed, not the system itself, but the ins and out of the main proposition, turning a system around with the same signals, but in opposite direction. I'll start with an example
Spreads: When you test a system and it happens to be a steady looser, it is easy to imagine flipping the signals. However, for every trade you make, there is a loss incurred on the spread, that adds to the apparent ability of the system to lose money. When you flip the signals around, that spread still runs against you.
What other things play a role, in your opinion?
Thanks
Please pull my head out of my ass, I am running out of oxygen...