Success in trading

Hi

i basically know that the 2 components needed for success is
1. Trading system that has an edge
2. Money management rules

yet I can’t allow my ego to follow somebody else’s system and stick through the boredom of waiting and waiting, it’s like I’m looking for that mental *click* where I create my own things and therefore take full accountability for them.

Could i I have some input and guidance please. This is self torturous and painful.

You can add:

3. Discipline to follow your rules.

3 M's ---------------- Mindset, Money management, & Method

How do we determine of our trading system has a positive edge?

We objectively quantify our trading system, then carry out backtest followed by certain amount of forward test to ensure that the test setup is not curve fitted.

The problem here is many trading systems are subjective with discretionary interpretation. This makes it not possible to carry out objective testing.

So, how do we determine such subjective discretionary systems has a positive edge?

Most people believe that their profitable account is proof of positive edge.

What we need to know is that losing trading system does not mean,

1. Trading system has a negative edge,
(Losing trading system has no edge.)

2. It must generate actual losing results.
(it can generate winning results due to positive variance.)

Trading with system that has a positive edge or alpha over the market is like the casino gambles with a house edge due to the fixed unfair payout.

There are many posts that say trading systems on the systems section are profitable. It depends on the individual trader.

This implies that it's easy to devise a trading system with positive edge.

I have written all over the forum about measured positive edge to raise awareness. It irks some members because most trading systems fall under this subjective discretionary umbrella. My apologies.

Do not assume. That's the message.

Either you kill the ego and develop patience or you're going to have to just keep grinding it out until you develop your own method. Which could take a couple months, couple years, or could never happen. Either way youre going to have to kill the ego and develop patience anyways so why not do it with a time tested proitable strategy.